Good day. My name’s Ben Everingham and I’m the director here at Pumped on Property and in today’s video, I’m going to get a little bit more personal. I’m going to focus on knowing your why and why that is so important for you as an investor.
Good day. My name’s Ben Everingham and I’m the director here at Pumped on Property and in today’s video, it’s going to be a little bit more personal. It’s not just going to be properly-related data stuff that everybody knows I’m good for but more around actually understanding your why, what is it about property investing that drives you, what is it about achieving financial independence that’s going to create the lifestyle that you’re looking for, so it’s a bit of a different approach to what I normally do. Persevere with me. I hope you get a huge amount of value out of today’s video and I’m actually really, really excited about walking this one through because it’s something that I personally think about as a business owner, as a dad, as a husband, as someone who’s interested in health, someone who is an investor and who helps other clients do this stuff for a living.
I suppose before we get into the why, because jumping straight into the why is like peeling back an onion. There’s a series of things that I think most people fail to do to really uncover what’s beneath the surface and what it is that will motivate them enough to go through all the shit that you have to go through, excuse my language, as an investor because there’s so much stuff. I’ll share a few of those stories with you throughout this video that you’re going to have to overcome. Obstacles are going to come up in your way and you’re going to make mistakes and you’re going to make money and you’re going to lose money. There’s all sorts of stuff and so unless you’ve got a strong enough why or reason for doing it that pulls you through everything, it’s going to be like pushing a rock up a hill. That’s no fun for anyone, for anyone that’s done it before.
In terms of the starting place, I always like to start with really getting real with where are you right now. What is your financial position? What is your borrowing capacity? What are you doing for your job? How stable is that? What’s your savings position look like? What assets do you own? What is your net position, and really getting real with, “Okay, this is where I am today but just because I’m here now doesn’t mean that that’s where I have to end up tomorrow or in the future”?
After you’ve identified where you really are, it’s about identifying where it is that you’re going. You don’t need to know every single step of the journey for the next 15 years because that would drive you insane and tomorrow, it would change anyway as you learn more but you really do need to put a peg in the sand and go 15 years from today, 20 years from today, 10 years from today, I am going to be financially independent and I am going to at least have replaced my current annual salary through my investment properties. I’m not going to be doing it from refinancing equity from the bank. I’m not going to be doing it through skimming a little bit off the top from 20 investment properties. I’m going to learn a hard number of investment properties completely outright and I’m going to have a crack at this.
Saying that you’re going to make 50 or 100 or 200 or 500 grand a year from property is all cool but it’s only all cool if you know what your next step is and what you’re going to do along the way to actually achieve it. It’s not cool when you get in front of the mirror and say I’m going to be rich or I’m going to be this or I’m going to be that or I’m going to own certain number of properties and not actually get on with the important part, which is executing on the strategy and actually going out there and building the skills and the knowledge to do this stuff properly. Understanding where you’re going is very important. For me, it was super simple. I just wanted to replace my current annual salary so that no matter what type of marketplace we’re in, no matter if I lost my job, if I wanted to take a year off, if I wanted to start a business, I could have a reoccurring income stream coming in regardless of me getting out of the bed and having to do anything for it during that day.
I think something that most people don’t look at, and these are the things that actually stop you as you start getting further into your journey, and that’s knowing what’s really holding you back. Do you have what I have, which is it can be sometimes analysis paralysis or information overload like I just love the data so much that I find it becomes difficult to make decisions sometimes because there’s just so many great options out there, or do you have no social support network, or do you have no one in your direct life that you can talk about this stuff with and share your passion with and bounce ideas off that’s going to give you realistic feedback, or did your parents never invest in property or buy property, or have none of your friends done this stuff, or is your job not giving you enough money at the moment, or do you not have enough savings, or have you bought a couple of bad properties that are holding you back that you don’t want to sell for whatever reason?
There’s so many things that are holding you back, holding me back, holding all of us back from achieving our true purpose or our true desires or our true goals but overcoming those things one by one and working through them through experiences is the way that I’ve begun to overcome a lot of that stuff in my life. You have to overcome that stuff. Otherwise, you’re going to end up in exactly the same position that you are now. If you’re in the position that you want to be and then sweet, turn off this video but I’m a person that likes progress and likes to grow and likes to learn. It’s always, for me, about re-understanding where that goal pos. It’s not always more money. Sometimes, it’s more time or more lifestyle or more health or doing more of the things that you really enjoy with the people that you care about, is probably for me personally, it’s more of that stuff these days than anything else.
After you’ve gone through that starting process of knowing where you are right now and where you’d like to be and what’s holding you back, it’s a process for me, or this is something that I’ve used in my life that not many people talk about in the business world or in the investment world but it’s knowing what you don’t want. An example of this for me is before I started this business, I think from the time that I was 13 or 14, I must have worked with at least 40 different businesses. A big part of me finding my passion in my work life was finding what I didn’t like doing. I’ve got nothing against anything I ever did in the past. It just wasn’t right for me and it didn’t really inspire me to get out of bed every single day to learn, to grow, to push myself, and to build the skills that I needed to do to successfully help by over a $100 million for my clients.
Knowing what you don’t want to do in your work life or in a relationship or in your investment life is equally important. I think a lot of investors out there come into it going, “Well, I would like to do subdivisions and I’d like to do rentals, and I’d like to do dual incomes and I’d like to build something brand new and I’d like to just buy and hold something simple.” It’s like there are five different strategies there and people that focus on one of these strategies for a lifetime still make mistakes, so it’s really about identifying and being true with yourself about what it is that you’re prepared to do.
I talk to people all the time. They say they want to be high-risk, they say they want to be active investors. Again, I don’t believe in high-risk in any way personally for myself or for my clients but these people say these things and then you talk to them and they’re at a stage of life where they need to be secure, they need to be low-risk, they need to be smart. They don’t have to be crazily active or they say they’re active but they’re not prepared to renovate a place and they really just want something safe that they can set and forget that will give them average or above average returns over the longer term.
Again, there’s a big thing in the Australian property market where people just don’t understand the history enough and don’t understand the compounding effect of 20, 30, 40, 50 years’ worth of consistent growth in the Sydney, Melbourne or Brisbane properties. I’m going to create a video on this, which will be the 50 years of the Australian property market recently. I highly recommend that you … Recently, the 50 years of the Australian property market history and I’ve been really reviewing that data and ripping into it. I’m going to look at some of the things that I’ve learnt from that and share that with you in another video.
Knowing what you don’t want is so important and it’s something that we don’t spend enough time doing. You can read about other people’s mistakes and you can sit on the fence for as long as you want to sit on the fence and you can play it small and never do anything but at the end of the day, the reality is you are going to make mistakes. You are going to find out what you don’t want to do through doing certain things. I don’t like renovating anymore because it’s painful. It’s always a punish. It always costs more than you think. It’s just not where I want to focus my time and attention, so I don’t focus on that product anymore.
The third major thing I wanted to talk about in terms of this concept of really understanding and knowing your why for doing this and again, this is all just setting up for actually understanding your why, is really knowing what you’re prepared to sacrifice. Again, I hear people say that they want $100,000 per year in passive income when they’re earning a $70,000 a year wage, so let’s just get real about this for one second and remove all the fluff, which is people telling you that you can get rich quick. You can’t. You are not going to get rich quick. Just deal with it. Just understand that this is a 15-year journey, maybe a 10-year journey for a very aggressive investor at the right time but for most people, it’s going to be 20 years to replace that income.
Think about it this way. If you spend one hour a week on your investing or even four hours a week on your investing, over a year, you’re spending between 50 and 200 hours focusing on investing. In the other time of your life where you’re spending, let’s say 40 hours a week plus the time it takes you to get ready to get to work, to have lunch, to do your work and to go home and all the commuting and bullshit in between of having a job, you’re spending 40 hours a week times 50 weeks a year.
Let’s just go back and think about that for a second in terms of actual numbers. You spend maybe one to four hours a week focusing on investing in property, which equals about 50 to 200 hours per year, versus going to work and the time it takes you to get to work, to do the work and to get home from work, as well as all of the stuff in between, and you’re spending 40 hours a week times 50 weeks a year doing that sort of stuff. It’s just un-comparable the results that you’re going to get because you’re spending so much time and attention over here. It’s crazy to think that spending a tiny bit like 1/10 or 140th of the time actually focusing on the investment property stuff, that you’re going to be able to really do that in a meaningful way and achieve what you want to achieve in a tiny timeframe.
There’s this delusion in the marketplace and all of these brokers on stage and all of these magazines don’t help it with like the stories of the guy that got rich quick or the stories of the guy that bought at the right time from a hot spotting idea and bought a bunch of them. What they don’t talk about is all of the 60% of people or 70% of people that lose money from those get-rich-quick strategies and stuff like that, so I don’t want to get too dark or too judgey you on that stuff but know what you’re prepared to sacrifice and know what the return on that times realistically going to be.
If you’re prepared to put one in hour per week for the next 20 years into investing in property, then you’re going to get a certain a result but if you’re prepared to put more time and energy than that and it becomes a part time job or business for you on the side and you stay focused and you stay consistent, then there’s amazing opportunities to be had. If you’re the person that work on it, just outsource it like it’s not the best return on your time or your investment and if that one to four hours a week you spend on realestate.com, you might as well be watching the grass grow because there’s nothing meaningful from doing that type of activity. That’s not going to get the results that you need. It’s not the right information to be following and sitting there strolling suburbs all night just isn’t going to get you there.
I’m really, really, really in tune with what I’m prepared to sacrifice. I know that between Monday and Thursday, I’m prepared to work 50 hours a week and I know that I’m prepared to break some of that time into my businesses and some of that time into my investments. The cool thing about what I get to do is there is so much overlap because I’m buying property every day, I’m seeing great opportunities, and I’m getting the opportunity to buy that stuff for myself.
For most people who aren’t in the market every single day, that overlap isn’t there. I know that I’ve got 50 hours per week and I’m going to do that for the next 20 or 30 or 40 years hopefully. That’s what I’m personally prepared to sacrifice for myself and for my clients. You’ve got to get real about that like if you’ve got a family or a stressful job or you’re trying to earn big bucks through your wage, maybe that’s a better use of your time and you should just outsource some of the other stuff.
I saw a video recently from a friend of mine and that friend of mine owns part of the Entourage, which is a coaching business in Sydney for basically business owners. One of the guys that used to work for them has actually just gone and started his own business. He talked about, he just created this little video and again, it’s a business coaching, personal development thing that he’s promoting. I saw his video and he walked straight up to the camera and he looked at it and he’s kind of like, “What do you really want? Like seriously, what do you actually want out of your life?”
It moves me in such a way that I got completely emotional about it because I was like, shit, I don’t know but I do know like I’m lucky that I do have very clear goals and aspirations for myself in my life but it was very confronting to just have someone in your face like, “What do you actually want?” type thing. What I think and why I think that question is so important is because we get so busy, we get so caught up in this stuff like I’ve got so many clients that say to me their life is so hectic and so busy and all of this stuff going on but I’ll look at and break down their time in their life and it’s not really that busy. It’s just filled with lots of little things that have no impact or no real meaning that don’t contribute to any of the things that they care about like better relationships, like health, like starting businesses, like investing in property or making more money in their job.
Understanding what it is that you really want is so important and sitting down and writing about what it is that you want, sitting down with your partner and getting on the same page about what you both want, going away for a day and just having a day of walking on the beach and thinking about what it is that you want in your life because it’s gone and over like that. Just think about how quick the last five or 10 years has passed, how quickly this year has passed for you. With that understanding, what you want, you’re going to end up somewhere. It’s just going to be nowhere near where you actually see yourself or where you want to be.
A question that I ask myself all the time is, why am I here? I know the reason I’m not here and that’s not to just cruise along. It’s not to just hope that everything’s going to be okay in my future. It’s not to end up on the pension like unfortunately my grandparents have ended up. It’s not to live in a caravan like I had to live in till the time I was three or four years of age because my parents were saving for money and because it was so … saving for deposit for their first property and it was so difficult at that time to save money and property prices were doubling every 12 months at that time. That’s not what I want. I don’t want to wake up every day and feel dread like and that feeling that I used to have when I had to work for some of the other people in jobs that I’ve had where I’ve got no purpose in my life, I have no meaning.
What I do know that I 100% do want is the choices that come with being financially independent and the choices that come with making positive decisions in my life on a day-to-day basis and the choices that are going to come in the future because of the work that I’m doing now. I know that if I can get a couple of million dollars’ worth of property over X amount of time and I hold that property for the next 20 years and that property increases in value by four or six or 7% per annum compounded over that time, that I’m going to end up a multi-millionaire without doing anything crazy.
I know that if I buy a couple of properties and I hold them for the next 30 years, I’m still going to be in an amazing position and I know that I can pay them off outright. You’ve got to get real about why are you really here and property or businesses or your job are just the vehicle to do more of the stuff that you really want to do. It’s about time with family. It’s about doing things that make you passionate. It’s about finding that why and what drives you and just realising that property is probably one of the easiest ways that you can go out there and achieve it but you’re not going to achieve it today, you’re not going to achieve it in five years, you’re not going to get rich quick, you’re going to make some mistakes and that’s all part of the journey. That’s completely okay.
In terms of this why question, I just wanted to share my why and that might give you some insight into yours but the reason I get out of bed these days is to serve other people. That is just straight out it. About two to three years ago when I started the business, I had been such a selfish little self-absorbed thing during my early 20s and mid-20s and even my late 20s. I was so money hungry and I was so about getting the investments and not wasting a dollar and doing all that hard stuff and getting the skills and jumping between job to job to get skills, to get experience, to make more money. I burnt some bridges along that journey and I look back at myself and I just shake my head.
My why these days is to get out of bed and feel comfortable about what I’m doing with my life, to spend time with the people that I care about when I want to spend time with them to do great work. As a business and as a buyer’s agency, we’ve just went from working with 20 clients a month to seven a month. Think about people in the real estate industry. It’s always about more. It’s about more money. It’s about more pressure. It’s about more busyness but at Pumped on Property, we’re the complete opposite. That’s a direct result of my headspace.
I just want to do great work for people that respect and understand what we’re doing. I want time to train. I want time to play soccer. I want time to surf and spend time with my family. I want to take my kids overseas. I want to be there for my kids. My why is being driven by leaving a legacy and leaving in the impacting trading videos like these that hopefully move people and inspire them to do good stuff and to realise that I’m just a yobo from Queensland that did some hard work at the start but this is possible for absolutely anybody to buy quality investment properties, to start good businesses, to help other people lead better lives, to make more income in your current job, to educate yourself about investment properties and to make better decisions.
I’ve lost massive money. I’ve had tenants burn down granny flats of mine. I’ve had knife fights in investment properties. I’ve had cars driven through investment properties. I’ve speculated and lost money in regional towns. I’ve bought really good stuff and sold it too early in Sydney and Brisbane. I’ve made massive mistakes but I’ve also bought some really good stuff and learnt some really good lessons and I’m so excited about the future. I think unless you’re getting up excited, then, you really need to shake yourself up and think about your why and think about what’s meaningful for you and just realise that property, your job, they’re just vehicles. They’re not who you are. They don’t define you. It’s not who we are. We’re not built to go to work and work 50, 60, 70, 80 hours a week. We’re built to connect with other people. We’re built to learn to progress, to put a peg in the sand and go, “I’m going to relentlessly work towards that goal but I’m not going to sacrifice my happiness along the way. It is a journey.”
I hope I haven’t got too deep or philosophical in today’s video. I go on these rants and as you can see, this is meaningful stuff for me. This is my passion but I wanted to impart with you that you need a strong enough why to pull you through all the crap. I laugh about my granny flat being burnt down. I laugh about the car being driven through the property now because what else can you do? What’s the point of holding on to that stuff? I laugh about the shitty solicitors that have ripped me off or the property managers that I’ve had that didn’t look after the properties or my naïve, like how naive I was at the start thinking I actually had any idea what I was doing and how far I’ve come as an investor and as a business person as a result of continually wanting to grow as a person.
I’ve loved today’s video. Thank you for listening to me if you’re still on it. I’d love the opportunity to book in a one-on-one strategy session with you. Just jump over to my website. Dump. I mean jump over to my website, www.pumpedonproperty.com. Click the free strategy session button and book your time in with me or my brother and let’s have a meaningful conversation about where you are and where you’d like to go.
Let’s overcome some of those challenges and let’s just create a plan to either get started if that’s where you’re at or if you’re already there, let’s try to plan to simplify it and to actually get you financially independent within the next 10, 15, or 20 years and not just talk about it, not end up broke like 80% of the people from my generation are going to be on the pension but in a really meaningful place that we design. Then, let’s just get on with the doing, which is the easy part that we’re all great at.
Thank you so much for your time and have a great day. Bye.