Many investors come from a place of not having worked for anybody else for a long time. They have their own businesses and they’re used to marching to the beat of their own drums.
Maybe that’s why property investment appeals to them so much. Having a positive cash flow portfolio is another way to make sure they never have to work for anybody else.
It certainly played a part in Mark’s decision…
Mark likes to tell people that he hasn’t had a job since the 1990s. Instead, he’s worked for himself and founded a number of businesses over the last couple of decades.
He says being in control of what he does is what attracted him to being his own boss.
It’s no surprise that property investment appealed to him!
Mark always had an interest in property and he’d bought several since the 1990s. He found himself splitting his time between his businesses and his properties, and it was starting to wear thin.
But he noticed something important when his businesses went through cycles…
Whenever business was down, his properties would always pick up the slack.
Maybe there was something more to this property investing game than he gave it credit for.
That was his ah-ha moment!
Mark realised that he needed to place a bigger focus on his property journey. But to do that, he needed to educate himself first.
He started searching for ways to invest effectively without losing a ton of money upfront. And his answer came when he first saw Dymphna Boholt on stage in 2012.
Mark discovered that the I Love Real Estate team took a different approach to most investment strategists. Where most pointed him in the direction of negative gearing, we talked to Mark about a positive income approach.
Unfortunately, Mark’s journey had to go on pause before it really started. His wife received a diagnosis of breast cancer and Mark made her his main focus.
But that’s also what taught him that he really needed a passive income!
Now, he just needed to land on the strategy that would work for him.
Mark decided to focus on the room and boarding house strategy.
This is a great choice for those who want to provide affordable living options in attractive locations to tenants. Each tenant rents a room in the property, which they’re responsible for. They don’t have to worry about what the other tenants in the property do. Plus, they don’t have to pay through the nose to live in a desirable location.
Mark started to buy properties so that he could turn them into boarding houses. This often required subdivisions and various renovations to bring them up to purpose.
Today, he focuses primarily on developing new build properties. In other words, he’s creating boarding houses from scratch that meet his specific requirements.
That’s a strategy that may not work for those who’ve just started their journeys. It’s typically more difficult to borrow with this strategy. Plus, you’ll likely need to hire a project manager to oversee the development.
Still, it’s working for Mark because he’s put the time in and is now in a position to execute the strategy.
Today, Mark has a portfolio of properties from which he receives multiple rental incomes. To give you an example, just one of those properties generates a $41,000 per year positive cash flow.
Now, he’s in a position to live his life on his own terms. That passive income means that he can take time for his family whenever he needs to. And he doesn’t have to worry about dealing with the ups and downs of running a business.
There are a bunch of lessons that you can learn from Mark’s story. Here are three that every investor needs to know.
No property investment journey goes perfectly.
In Mark’s case, the major obstacle came with his wife’s cancer diagnosis. He had to give her all of his focus right at the point where he felt ready to focus on investing.
The key is that you don’t allow these obstacles to stop you. Patience is often the most important virtue for a property investor. Assess the situation and create a plan so that you can overcome the obstacle and continue your journey.
We teach many different property investment strategies at I Love Real Estate. The reason for this is that every person we work with has a different situation. The strategy that works for Mark may not work for you.
However, there is one thing that every strategy has in common…
You need to build a business plan around it. You need to know what you’re going to do and when. And you need to have a roadmap in place that you can follow to achieve success.
Trying to implement a strategy without having a plan in place means you’re always at risk of stumbling along the way.
Mark gravitated to I Love Real Estate because we place the focus on positive cash flow.
Now, he’s finally taking the step of getting rid of some of the properties that he had before working with us.
They’re not generating the income that he needs them to. As a result, they’re draining resources that he could put towards properties that suit his strategy.
The simple lesson here is that any property that fails to generate positive cash flow is one that you don’t need in your portfolio.
Mark’s success as an investor truly started when he decided that he needed to educate himself.
Working with I Love Real Estate exposed him to strategies that he’d never considered before. And it is through one of those strategies that he’s achieved so much success.
Now, it’s time for you to take your first step.
No matter your circumstances, there’s always a possibility that property investing could work for you. Don’t allow fear to control your decisions. Educate yourself and you may find the perfect strategy.