Good day. My name is Ben Everingham and today we’re going to talk about how to create a property investment strategy for a new year.
Hey, there. My name is Ben Everingham and today we’re going to talk about something that’s extremely, extremely important to me and extremely close to my heart and that is, “How to create a property investment strategy,” for a new year.
This is a little bit different than some of the other videos that I’ve recorded in the sense that this is what I’m obsessed with, this is the reason I get out of bed, and this is my passion. I put my hand up and say I’m probably going to rant a little bit in this video. I’m probably going to get on my high horse a bit and point some fingers. Most of those fingers will be back at myself because, like absolutely everybody, I’m my biggest, own worst enemy.
Today I broke it down into some of the things that I talk about with our clients, some of the things that I’ve learned as an investor myself, and some of the things that I think are extremely important in terms of developing a property investment strategy for the new year.
The new year might be the start of the year, it might be the middle of the year, it could be a quarter. It could just be whenever you’re ready to actually get your stuff together. Or, excuse my French, just get your shit together and you’re ready to go because there’s no reason or no rationale behind waiting for a new year, and expecting that new year to be any different than the current year. Unless you’re prepared to get out there and do what you actually need to do to make things happen.
I’ve broken this video down into eight or nine different parts today and I’m going to sort of by talking a bit about all of them with this overarching theme of: it’s extremely important to develop that investment strategy, and you can actually do that whenever you’re ready to.
I’ll start the video like I always do with, why is strategy important? I used to run a lot, and I actually ran a marathon with a friend of mine in Melbourne. Not so much because I necessarily wanted to run 42.5k, or 42.9 kilometres, but because I knew the person that I had to become to run 42 kilometres wasn’t the person that could just get out of bed and run 3k’s or 6k’s or 10 kilometres.
It was because I had to consistently show up, and I knew that consistently showing up even when I didn’t want to would help me develop characteristics in myself that would enable me to overcome future obstacles, because nothing I’ve done since was harder than that, mentally or physically. Before I ran that marathon, my friend and I were training, but he was training in Sydney, and I was training in Queensland. We’d catch up, and we’d talk while we were running and we had a plan of attack. He followed through on a huge amount of his plan before the marathon.
I think he ended up running about 35 or 36 kilometres before marathon day, where I followed part of my plan, and was following someone with a different philosophy. I actually only ran 25 kilometres, it was the furthest and largest run I’d ever done before I stepped up to do the marathon. From 25 to 42 kilometres in one day was a significant jump, and I remember finishing the marathon because I 100% had the confidence and the belief that I would finish the marathon and ended up holding hands with my partner and one of my best mates, Grant, over the finish line. It’s still one of the best photos of my life, because we both saw ourselves running into the Melvin Cricket Grand, holding hands and celebrating.
The reason I shared that story is because I couldn’t have run that marathon without a strategy and a plan of attack. There’s no way I can just get up unless someone’s got a gun here, I suppose and go and do that sort of thing. It takes time.
Strategy for me is the foundation and the pillar to everything that we do at Pumped on Property, and I think the missing link for most investors in the Australian property market: they know they want to buy a property, they know they want financial independence in the future, but either they’ve got the wrong strategy or they don’t have a strategy to start with. By starting with strategy, which is what today’s video is going to be all about, it enables us to start with confidence, start with the right foot forward, and then execution’s the easy part.
People that say to me that developing a plan’s the easy part of what they do. I’m the complete opposite. I find once I’ve put a plan in place and the motivation to go and achieve it, I just go and do it. Everybody’s different, sometimes people find it easy planning and hard to go do stuff. Other people are the reverse of that. To start off with your strategy, I think it’s really worthwhile sitting down and really thinking about some stuff or going out in nature, or having a beer or a glass of wine, and thinking about what’s actually most important to you. Because there’s no way in the world that you’re ever going to get to where you want to be if you don’t actually understand why it’s important to you, and what it is that you’re going to do.
I always start with why and that’s because achieving $100,000 in the future of passive income per year, or replacing your current annual salary, or getting out of work so that you can follow your passion, or spending the rest of your life travelling or contributing, or spending time with your family is the real reasons we do stuff. By understanding the real reason not just the financial reason for your goal, puts it, for me personally, a much bigger picture to the goal.
I’m working towards contributing to as many people’s lives as I can. That’s why I get out of bed every day, because I think the more people that achieve financial independence the better the world would be. In the sense that those people … and me and my wife get to do really cool things that I never would have done if I was shit-scared every single day about money; or I needed to go to work, to a job, because I needed that money to keep my investments; or myself moving forward; or to repay debt off; or whatever other reasons people get out of bed, that aren’t following their passions every day.
I know that’s a really easy thing and that’s a high horse. I’m listening to myself and I’m going, “You dickhead.” Seriously, it’s important to understand that starting with understanding your why and following your passions is going to get you to financial freedom a hell of a lot quicker than doing something you hate, because if you do something you hate you won’t necessarily go the distance, It’s going to be hard and it’s going to be a grind, like pushing a rock up a hill. Where doing something you love, it requires a lot of momentum at the start, but that escalates as it goes down the hill and picks up speed and gravity and all the stuff that comes with it.
Understanding what’s important is the first step, and then, knowing where you want to end up for me is the second step. Again, like if the reason you want to do this is because you want to spend more time with your family in 10 years, awesome. If family’s the foundation for you or health’s the foundation, or travel is the foundation, that’s brilliant.
It’s also equally important to go: okay, that’s the emotional me talking, but the logical me is saying, “I physically need $100,000 per year to maintain the lifestyle that I want to lead.” And $100,000 might be the starting point, it could be 200 grand, it could be 50,000, it could 30 grand, whatever it is for you. Knowing where you want to end up is also equally important, because you can either work towards that or you can reverse engineer that backwards. Either way, you’re going to have to know where you want to end up.
That’s really about understanding your angle and what’s most important to you, and then knowing how much financially … because the reality is you can say what you want about money, but you are going to work for a reason. Whether that’s because it’s following your passion and the way that you want to show up and contribute in the world, or whether it’s because you need it.
Unless you want to go live off centrelink, or unless you want to go to a third world country, but even then, you’re still going to need money to survive. Money is going to be a part of it, so you’ve got to get comfortable knowing that money is a part of it, and that’s something, coming from no money when I was growing up but I’ve had to personally deal with the internal challenges that I had to overcome to go, “Money is not bad. It’s actually just energy or just the way of creating the lifestyle that you want to lead.”
Most of the people that I know that actually have any money are the most generous people. They spend their time contributing. They do the things that they love and they inspire other people to go out and do the things that they love, as opposed to this “money’s evil, you’re going to have to be a bad person and rip people off on the way up.” It’s just not true. Or it is, if that’s your truth … if you’re a shitty person and now you’re going to be a worse person with money.
If you start from a good foundation, you’re only going to have more to give in the future to other people. Overcoming that stuff is very, very important. The next step after: knowing where you want to be, and why you want to be there. It’s to know, honestly, where you are right now so you’ve got to have a week-to-week budget, and you’ve also got to get honest with yourself, and go, “This is my financial position. This is my ability to borrow money. Based on my financial position and where my ability to borrow money is, I can do X.”
I talk to people every single day of the week that have these completely ridiculous expectations around what they want to achieve, because they’ve really got no financial acumen, or no idea about what’s achievable based on where they are. A good example of this is, I talked to people that are like, “In three years time, I want to own five properties. In 10 years time I want to own 10 properties, and I want $200,000 a year in passive income, and I don’t want to be working anymore.” I’m like, “That’s awesome, how much money can you borrow right now?” “Well, I don’t have any savings. I’ve got all of this bad debt, and the bank said I can only borrow 300 grand.”
I’m like, “That’s cool that you’ve got these big lofty goals that are not connected to anything meaningful, but you really need to understand, this is where you want to be; this is what you can do now. What’s the best first step that you can make to achieve your goals?” Sometimes it’s not about moving forward, sometimes it’s about developing a plan of attack. Taking 12 months to get yourself ready to make the right first step as opposed to just jumping in buying some shitty little regional property that’s never going to do anything for you, and that actually takes you further away from your goals once you know what it is that you’re really doing.
After you know where you are right now, it’s important again to take a really deep breath, look at yourself again, which isn’t always easy, and go, “What’s stopping me from achieving my goals?” If you really want to have a big life and achieve things that 2% of people in Australia end up achieving, which is financial independence, then you’ve really got to know what’s holding you back. For some people that might be a fear of success. For other people it might be a fear of failure, it might be limited education, it might be information overload, it might be no mentor, no coach, no strategy.
Whatever it is that’s stopping you from achieving your goals, you’ve really got to look at those. Sometimes, understanding what they are is 80% of the battle, but sometimes you’ve actually got real things in your life. You don’t know how to budget, you don’t know how to save. Then, if you want to ever achieve any sort of financial independence, you’ve got to overcome those things. They can be overcome slowly, as I said, that momentum builds and it becomes easier to save, but nothing’s going to be harder than saving that first deposit in your life.
Saving my first deposit was harder than running that marathon that I talked about before, because it was such a massive goal like my mindset and my upbringing was, “You have money. You spend money. You sometimes spend more money than you actually have.” That’s the default for most people in Australia, and that’s why 80% of people from my generation are going to end up on centrelink and end up on the doll.
I just can’t imagine anything worse than that personally in my future because you’ve got this opportunity and you’ve got this life, and over a 10 year period you can dramatically change where you start and where you end up. That’s the message that I wanted to share in today’s video. Once you know what’s holding you back, you then create a plan for your next property.
If you’re just getting started, then that might be hard to do. I’d like the opportunity to offer you a one-on-one strategy session with me. Regardless of where you’re at right now, I think sitting down for now, together, or doing that over the phone and really mapping out where it is that you’re looking to go would be meaningful. If you’re already on your way, like 90% of our clients are, but just want to refine it so that you can get there a bit faster.
I get to talk to 2,000 people every year, investors from all over Australia. At least 500 of them have already repriced between 100 and 300 grand a year, and passive income through the properties that they’ve bought themselves or with us. That’s the sort of knowledge that you get from talking to people that are at such a sophisticated level, makes you see things really, really clear.
It’s just about hanging around those people consistently that are already there, and relaying that information back to people that might not get to hang out with people that are doing those sorts of things on a day-to-day basis, or might be trying to do it all on their own.
Creating that plan for the next property is about identifying the market you want to invest in, the suburb you want to invest in and the type of property that you would like to buy. On a bigger picture, the overarching strategy that you’ve got. You can develop; you can subdivide; you can build townhouses; you can renovate; you can buy & hold; you can add granny flats; you can build dual income. There are so many different ways to get from A to B.
You’ve got to find what resonates with you and makes the most sense to you, and then also identify the strategy that you can afford. That is going to obviously require the absolute lowest risk, because at any time in the market there’s ebbs and flows. You don’t want to be the person that’s stuck at the bottom when things don’t go bad.
After you’ve created that plan of attack and identified your next step, you only need to know one step at a time. I talk to people every day that are obsessed with knowing this, and knowing that, and having the big picture all figured out. What you really need to know is: know where you want to end up, know what your next action step is, and then relentlessly take action on that next step until you achieve it.
Before you take the next step, think about what you’ve done, think about the bigger picture and align it together, and then go, “Okay, now I know my next step. Now, I’ll go extremely aggressively at that next step.” You don’t need to have the whole picture figured out.
This is something that I used to beat myself up about, I didn’t have the whole picture in place, or I’d plan 5 or 10 or 15 years into the future. The reality is, you just need to focus on the next three to six months. That’s what you can immediately control. You can control the day-to-day in your life. By doing smart things on a day-to-day basis, you will end up in a better place in the future.
Once you’ve got that plan in place, you then begin to focus on implementation, you focus on action. That’s really where the key to investing in property and creating passive income and a better future for yourself is. It’s around implementation and action and focusing on becoming the best that you can be in this present moment, and making sure that every day, you’re setting yourself up a little bit more for that future that you’re trying to create.
Or it might not be day-to-day; it might be week-to-week, month-to-month, year-to-year. You’re progressively working towards where you want to be. I know I’ve talked about a lot today. The overarching theme is, how to create a property investment strategy for the next year. There’s obviously some things that we’ve talked about. There’s what’s important, beginning to identify what’s most important to you. Knowing where you want to end up before you start, and then knowing where you are right now as well.
After you know where you are right now, it’s important to understand honestly what’s holding you back and beginning to learn to overcome those things. You mainly overcome those things through action, and actually achieving what it is that you want to achieve. Not talking about achieving it. Not sitting down and going, “Ah, I’m shit-scared, so I’m just going to pretend that it’s all this other stuff holding me back, but the reality is I’m just shit-scared, and I never actually had a crack at it, and I wasn’t prepared to have a crack at it.”
It takes a lot to step up, it’s not like you’re going to be isolated, there’s not going to be many people you can relate to, there’s not many other people around you doing it probably. The reality is there’s people online, like myself. You can listen to our videos, you can book a one-on-one strategy session with me. If you’re too scared to take that step, or you just want to take it by the next step, you can use a buyer’s agent like myself to help you do that. It doesn’t have to be on your own. We can coach you and mentor you through the first one, or the next one, and then you can use the knowledge and skills that you’ve accumulated but also get the result, not just more knowledge and skills to do what it is that you really want to achieve. Then once you’ve created the plan for the next purchase, it’s just about relentlessly implementing and taking action, checking what you’re doing and constantly improving it.
Thank you so much for your time today. I know that I’ve ranted a little bit, but this is something super close to my heart. My wife and I don’t get to record out anymore, sharing this stuff too much with other people but it is extremely important to understand what it is that’s important to you in your life. I suppose to get out there, and give it a crack.
You’re not measuring yourself against other people. You’re not trying to keep up with the Jones’s, everybody’s on their own journey and just trying to find their own happiness. I think investing in property is one way to achieve an above average future for yourself and for your family and for the people that you care about.
Remembering that the more you have can sometimes also mean the more you have to give, it’s not just about money, it’s about time; it’s about contribution; it’s about doing what you love on a day-to-day basis. That flowing on to the people in your life, that you care about, and you becoming a role model, or a leader, in your own life. Not through preaching it, not telling other people what you’re doing but just showing them from the actions that you’re taking.
A new year is a new opportunity, a new month is a new opportunity. A new week is a new opportunity to get started, to go out there and do what it is that you love, to go out there and begin to set the foundations of creating the future that you want for yourself and the people you care about.
I’m so passionate about this stuff. I love it. For anybody that’s interested, I’d like to offer a one-on-one strategy session with me personally, where we can talk about where you are right now, and where do you think you’re looking to go in the future. It’s complimentary.
I really appreciate your time. Until next time, stay hungry.