Oh. Good morning. Hopefully the audio is working. Well, I, get this gang. Well, morning gang? People just jumping on Good morning. Good morning. Jason here. A few of the team jumping on right now. So while everyone’s just jumping on for the morning coffee and a chat, quick intro, Jason is my name. In property investing 20 years, coaching property investors across Australia and New Zealand over 18. And each morning. Morning Karen. Get together with whoever’s available. Quick morning, live coffee, and a chat. Morning Alison. Just to talk through property investing and you know, the ideas of going the distance. Morning Julian good to see you. There’s my brother, hi bro. So I get this question all the time. And today I wanna talk about the idea that there’s a miss understanding or a misconception that being a property investor means that for the rest of your life, you decide you’re gonna be a property investor for the rest of your life you’re skimping and you’re living on red beans and rice and you know, you’d never get to have any fun. And then, morning Philippa. You have to wait to have all the fun and all the good things like for 20 or 30 years. You have to go without now, go without now to have something later. And the reality is that’s not true. That is, there could be anything further from the truth. And it just depends on what you’re trying to achieve. I call it, I say red beans and rice because my wife and I, many years ago when we were basically living from paycheck to paycheck. Well, before I took money seriously, well, before I read a book called, “Rich Dad Poor Dad.” And if anyone’s never read that book, you should go read it. It inspired me. So, we were living budgeting a buffer. Absolutely Alison. We were living paycheck to paycheck and when we’d literally we’d run out of money for the week and we’d have a day or two left before we got paid. we’d have a tin of red beans and some rice, and you’d put a bit of a, coriander in with it. And that’s what you’d have for literally a day. Breakfast lunch, and dinner. When you run out of money. But you know, we’re a long way, a long, long way from those days. But I remember those days. And some people believe and think that… Hi Karen, how are you? You guys are traveling in the car also, make sure you don’t crash. Some people believe that a property investing is about going without and I’m not gonna have any money. I’m not gonna have any fun. That’s always going to be stressful and stuff like this. And the answer is no that doesn’t have to be the case at all. Now, certainly I’ve seen property investors take on properties that are highly negative cashflow, not structured well, old properties that require maintenance, properties that require high touch. You know, you might take on a high cash cashflow property. You might take out a multi-room property. You think, Oh, it’s gonna be better cause it’s high cashflow and there’s more problems. There’s more challenges. And you know, for me as a property investor a long-term buy and hold property investor. There’s a little bit of a sweet spot when it comes to owning the properties. And so for me, we wanna make sure and hopefully for you too, I don’t wanna be being called all the time. I don’t want maintenance. I don’t want my agents calling me every five minutes. Okay. So for me, newer properties work in that sort of space. So, but it, how does it work? Here’s what I sort of say to everyone. In the beginning in the, maybe let’s say first one to five years, it is a bit of a focus on getting your deposits ready, getting your ability to purchase the acquisition strategy going. Okay? The acquisition strategy going. And it’s a choice, it’s a choice from you. It’s a choice for you to take the resources any spare resources that you have which are spare cash over and above your buffer. And let’s just quickly talk about buffer. As we think about, how we do this. Alison mentioned it before buffers, in my world I can, I coach my clients to make sure they have a minimum of $5,000 per property in their buffer for liquidity and safety reasons. So if you’ve got four properties that you need $20,000 for your property buffer sitting over there. And that’s always just sitting there you don’t go below that. And for me that gives you a bit of comfort factor for your properties to take care of themselves as we go along. Now, you should have a buffer in your personal life as well. I always say, you should have at least four months worth of personal cash buffer or sitting in your offset account for your personal world. So if your expenses for the month cost $3,000 times that by four, that’s another $12,000 in liquid cash always. So I teach this concept called the zero line. Your zero line should not be, oh, I’ve got no money in the bank and don’t worry. I’m gonna be safe cause I’ve got a credit card. That’s an insane zero line. That is the wrong zero line. Your zero line should be as a property investor certainly, or anyone who’s managing their and money. My minimum liquid cash balance sitting my offset account, or if you are listening in and you don’t understand offset accounts you’ve got your money in a savings account which is actually called the losings account. All right, put it in the offset account. So the money in the offset account is $12,000. And the moment your balance drops below $12,000 that’s below zero. You go into overdrive. You start saving, you’re shopping, your shit up. You know, you stop spending, you get sorted. That’s exactly what you have to happen, right? And your property buffers, five grand you’ve got four properties. You’ve got $20,000 in buffer in there. When it’s below $20,000 then you make sure you get 20 grand back into your buffer. And buffer can be, gang, buffer can be redrawn equity from your properties. So let’s have a look at that. But let’s say you’ve got your two buffers organized and you’ve got some deposits working with your acquisition strategy. First one to five years sometimes is the most powerful time where we can get out acquisition done and it’s powerful long-term okay. Powerful long-term. However does that mean that we have to live on red beans and rice forever and a day? The answer is no. When can we use some of the money? When can we use some of the resources to have some fun, with our property investment portfolio? You don’t have to wait 20 years. You don’t. Okay. So my advice or my encouragement is this, first thing’s first. We’ve got to get our acquisition strategy going. We’ve got to get our momentum going. At least two deposits into properties that you’re looking to cycle two to three deposits. Now that’s gonna be anywhere from a 100 to a $150 of equity or cash in your properties as your deposits. And what we want those deposits to be doing is recycling and coming back out of those properties in let’s say, two to five years and then going again. So you’re not having to always save and scrimp for the next deposit. So once you’ve got a couple of deposits, two to three deposits in, then you can let them recycle and roll forward. You’ve got your personal buffer set aside. You’ve got your property buffer set aside, and any money above those amounts we can have fun with. So let’s have a look at this. Let’s say every year you’re getting back 10, 15, $20,000 in tax money back. Now you can be putting that straight into your offset account. You can be making another extra payment on your mortgage if you want to. Morning James. Or what I do is I say anywhere between two and 5%, do the mathematics. Two and 5%, of your surplus tax money or your cashflow money out of your property portfolio for the year can be used towards fun. Sometimes you can get up to 10% if you want to of your net equity and your net cashflow back in your pocket. But usually, very usually between five and $10,000 a year. Once you’ve got three or four properties going, and if you’re on a combined income between a couple anywhere from a 100 to $150,000, you’re gonna get 15, $20,000 back in tax. You’re gonna get some extra positive cashflow. You’re gonna get a little bit of equity growth in your properties. And there is no problem. Zero problem at all, taking five or $10,000 a month. Hi Jeff, how are you, Mike? It is beautiful day in the Gold Coast. There is no problems at all taking five or $10,000 a year and having fun with it. Buying some toys, going on a holiday, fixing up the house at home, doing something special for yourself, whatever it is. And, hear me when I say this fun, gang. That money has to come from renewable sources. It’s like renewable energy, right? The sun comes up every day. Don’t miss the little secret in this. Don’t spend your income money that you exchanged your time for. Your life for, okay. You go to work, you exchange your life. You exchange your time and you get some money. Nothing wrong with that. Okay. But don’t then go and spend that money on things that de-value. Because once it goes there, it’s not replenishable. It doesn’t replenish. Instead of spending it directly once you earn it, you then take the money and put it into an asset. A property, shares, I don’t mind. Put it into an asset. And that asset now earns, creates money and wealth. It creates capital growth. It creates tax deductions. It creates cashflow and the renewable, the renewable cash return from the asset, you can then go and spend and have fun with. Don’t spend the non-renewable earnings which is your energy and your life for the money. It has to go one step further to an asset that asset earns cash, growth and tax deductions, gives it back to you and then you can go have fun with it. Everyone following along? Give me a thumbs up on the chat if you get what I mean, gang. All right. Don’t spend your money directly from earning it. Give me a thumbs up or a love heart or something if you’re following along, understanding what I mean. You can spend money that is created from your assets. Aah. Sweet ass. You can spend money created from your assets, because it’s renewable, it’s replenishable. It just keeps going. The, rent keeps going. The tax keeps going. The tax returns keep going. Long-term the capital growth keeps going. Do not consume non-renewable assets. which is your time and your effort. Put it into our investments as you go along. Well, hopefully everybody got the hang of that today, it was question… Hi Henry. There he is. All the way from Emerald in Rio. Hi Emerald. Hopefully that was a cool one today. A bit of a chat, a bit of a coffee and a chat. Hi Marie. Great to hear from you. a thumbs up. Yeah. Facebook’s changed a few things on their apps and yeah, thanks. I couldn’t see the chats the other day, but hey, listen gang. Hopefully that was a good one today. Join me again tomorrow for another coffee and a chat right about the same time and hi, listen. Anyone listening in. If you’re interested in finding out a little bit more about what we do at positive coaching and mentoring and so on, tonight, we’ve got a bunch of Webinars on from my coaches all around Australia. There’s four or five Webinars on tonight. If you wanna track one of those down and have a listen in, to listen to the strategy, the highest strategy that we do with coaching property investors across Australia and New Zealand, track us down in Facebook, under events or on our Website. Love to see you there. Love to help you out if you need some help. And if not, keep being awesome, keeping being amazing and keep joining me for a morning coffee and a chat and track down my podcasts. I actually chatted to a guy last week, Tim Forester. who’s worth close to a billion dollars. Close to a billion dollars. Come on gang listen to that podcast. What is a billionaire, almost a billionaire say about wealth. The true meaning of wealth. It’s a pretty cool one. So track us down, track us down on iTunes or anywhere else. You know, you can listen to those podcasts. Hope you get a bit out of it ’cause I certainly did chatting to, almost a billionaire and finding out about his attitude towards investing and a true meaning of wealth. You might be quite interested to hear that one. Anyway gang. You’re awesome. Keep being awesome. Thanks for joining me and see you tomorrow. Right about the same time for another coffee and a chat.