How you get past 10+ investment properties from a finance strategy perspective, with Sam Gordon – Ep. 75
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For the latest episode of this bonus series of the property investing journey, Mike is joined by seasoned property investor and Owner and Director of Australian Property Scout, Sam Gordon, to talk about his journey and how he helps his clients build their own investment portfolios.
Starting in his 20’s and on an average income, Sam amassed seven properties before he hit a service-ability wall. Sam shares with Mike how he went about finding the right broker and changing his mindset on selling assets to overcome his cashflow barriers and move forward on his journey. Now with a portfolio of 40+ properties, Sam is well placed to talk through growing your portfolio and maximising the return on your investments.
In this jam-packed episode, Mike and Sam discuss a myriad of factors, including first tier and second tier lending, low doc loans, knowing when to sell an asset to open up capital, and more. Sam’s passion for property and genuine enthusiasm for helping other investors shines through as he provides practical advice and real-life examples from his own experience.
From talking through asset types and touching on trust structures as property vehicles, the clear focus is to take investors beyond the typical 1-2 asset portfolios, and find the potential in a multi-property strategy. This is an episode you can’t afford to miss, no matter where you are on your property journey.
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Mike is joined by seasoned property investor and Owner and Director of Australian Property Scout, Sam Gordon, to talk about his journey and how he helps his clients build their own investment portfolios. Starting in his 20’s and on an average income, Sam amassed seven properties before he hit a service-ability wall. Sam shares with Mike how he went about finding the right broker and changing his mindset on selling assets to overcome his cashflow barriers and move forward on his journey.
What we cover in this episode
Multi-property ownership and investment
How to deal with resistance from the banks
Knowing when to sell an asset to open up capital
Hitting a service-ability ceiling
Working with the big four banks or second tier lenders
Understanding trust structures
How important is it to find a good broker?
Focussing on building an equity base
Getting the fundamentals right
“You’re going to get that debt back, which we’re going to be able to put back into the market and start using again, and that’s where I was walked down the route of how we go with trust structures” Sam 2:30
“A lot of the time what you find is you have good growth and that growth comes up so it’s all good to try and pull that capital back out, you pull it back out but rents haven’t moved so you’re dropping yourself further and further from a service-ability perspective” Sam 4:05
“You can’t be going out buying big chunky blue chips or plays or anything that is heavily negative because they don’t like that and they won’t lend to you on that sort of stuff” Sam 6:42
“You can go get a great deal and have this awesome asset, all the rest of it but if you don’t have the finance piece that goes with it as well and don’t have correctly structured financing to build it out properly then good luck getting past one or two (properties)” Sam 13:00
“I would have been on the average income up until it was 18 or 19 properties, I think it was that I was up until that point before I even started the business” Sam 19:58
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The Geared for Growth property investing podcast was created by Mike out of a desire to provide value to his property investor clients. The idea is to source Australia's leading property investment experts and find how they and their clients are achieving exceptional results. The podcast is open to anybody interested in learning how to invest and the strategies you can apply to achieve exceptional results. You'll hear from buyers agents, mortgage brokers, strata managers, accountants and other professionals all sharing their insider knowledge.