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[Music] hey guys eddie here from delete property today i'm very excited because i want to share a very important video with you now as you may see behind me i've got the whiteboard here and i haven't done this in quite some time but this video is all about how you can buy 10 properties within three years starting with just 100 000 in savings or equity so 10 properties three years starting with only 100k now before we get started i am not a financial advisor i'm not giving you financial advice in this video but as you may know my name is eddie delaney i have over 40 investment properties and i'm literally 30 years old right now now i started from nothing for those who know my story already i won't go into it but i was started with from very humble beginnings and pretty much built my portfolio up to over 40 probably by the age of 30. so i'm going to share with you in this video a strategy how i built my portfolio now this is part of how i built my portfolio it's not the entire thing but here's one way that essentially incorporates recycling deposits and buying properties that have three main key factors which is buying below market value buying high capital growth properties and buying with good strong cash flow and a high rental yield so i'm going to jump right into it and explain how you can buy 10 properties within three years so let's say as an example you've got 100k so let's just forget about this side of the board and let's just purely focus on 100k now assuming let's say you have a boring capacity of six seven eight hundred thousand whatever something like that roughly what i would do to get 10 properties in three years would be to take 100k that i've got split in half now i've got two lots of 50k and if i buy a property let's say property number one for 300 000 roughly let's assume that i bought it well so i bought it under market value let's assume that it has a good cash flow good yield and let's assume that it's in a metro area such as brisbane or adelaide or something like that but if i buy it i want to buy it for 300 and i want it to be worth 340 350 360. because if i can get it 10 to 20 under what it's worth then i'm making money on the way in so all these properties assume that they are bought under market value from the get go that's part of the three keys philosophy strategy that i stick to buying under market value properties so this to get 10 properties in three years you've got to buy under market value they've got to have good cash flow and they've got to be in metro growth markets that are going through a cycle or about to go through a cycle so let's say i bought property number one and i did a 10 deposit hypothetically right so 10 of what's 10 of 300 000 30k now stamp duty might be 10 grand legal fees let's just round it up you probably get into this for about 45 or around that and bear in mind there's some lenders out there that'll allow you to do a five percent deposit as well so yes you pay lenders mortgage insurance etc etc i'm not going to go into it but if you're maximizing our capital and we're going to have a property that has a good strong cash flow so it's going to be positive geared regardless of what or at least neutral to positive geared so this 300k property is going to round for 360 380 per week almost 400 a week so now we've got property number one we've spent 50k roughly probably less and let's say we did it again and let's say within this is the years right here obviously year one year two year three let's say we bought it in literally we bought these in one or two months so we bought two properties in one we signed the contracts on the same week as an example now part of this strategy is obviously you buying it below market value with a good cash flow and a good metro market so let's say these are both in brisbane hypothetically within six months within even three months i have personally and many of clients that i've worked with on day to day basis go back and they order a revaluation on these two properties right so some people have done it in two months three months some clients within six months some people do it in 12 months so let's just assume you're able to do this hypothetically the first one within let's say let's say worst case scenario let's say it's eight months as an example so we get these both revalued and they're let's say they get valued at 350 roughly now because you sometimes you can get them valued within like a month at 350 if you bought them under market value and they're worth 350 to begin with you're just refinancing them but there's a lot that goes into it and i'm not going to cover everything right now this is just the basic uh you know strategy of it so you refinance these two properties let's say you and you take out you do a new 90 loan right so you might have to pay a difference of lmi again but you do 350 so your property is worth 350 not 300 and you got 50k you can take generally 90 or you know up to sometimes 90 out but if you get them valued at 350 360 is literally pulling the 50k that you put in both of these properties back out so let's say as an example you get about a 360 i want to give you a bit of an example here so just down the bottom so if you get it valued at 360 and you do right then your loan would have been only 270 right so your loan would have been 270. i don't know if you can see that but your loan would have been 270. now 360 now you do a new 90 loan so 360 minus 10 with roughly 36 000 let's just round it up to 40k so your loan is at 320 now right let's just round it around up to four grand let's say it's lmi so he learns it so the new 90 of 360 is 320 and 320 minus your 270 is what 50 000 look it's magic 50 000 so we've got the 50k that was this side out right we've got 50k back out of it and now we've and we've done the same thing on this one so we've got 50k now we've got 100k again because two lots of 50k that we've got out of these two properties we've refinanced them topped up the loans or we've done a side loan restructured those two loans and now we've got 100k to do it again so we go off and we buy two more properties happy days now this could be as let's say if you did these two properties in month eight as an example so if this is year one this year two month eight's probably like right here let's say there was no stall behind the two properties we can find properties or you're working with a quality buyer's agent as an example that can help you out throughout the process and source your properties or if you're finding your own whatever it's all good but you go off and you buy another two properties so now we've got four properties and it was only eight months right it might be ten months let's say nine ten months by the time that happens but you catch where i'm going here so before a year we've got four properties one two three four and they're all worth 360 370 kind of range because we bought them well now at month number let's say now a month goes by we're at month number 11 or 12 so we're pretty much at one year we take out the proper we take out the equity again because it's been as an example three four months since we bought them we're at month eight when we bought these now we take them out at month we take equity out at month 12 or 13 so we just passed one year and we go off we've got 100k out same process again we've refinanced them restructured and this is not assuming the market's gone up this is just assuming that we're taking the equity out that was already in there to begin with so in a year like as an example 2022 right now guys the brisbane market adelaide market in the last 12 months i've got a 30 percent of mo in most regions so in some suburbs they've got 50 the last 12 months so but let's assume that no growth happened like this is doing it with no growth just past year one we go off and we've got 100k let's say for argument's sake we buy a duplex we buy a property that is two properties on one title i've bought i own about four or five of these duplexers myself throughout brisbane adelaide except i own a duplex in sydney now as well but in brisbane adelaide you can get duplexes for like sometimes adelaide you can get them cheaper brisbane you can get them at like 550 600 in the current market and that let's say that 550 k duplex is running out for like 650 because you've got two different rental incomes so all these properties you want to have a good minimum five six seven percent yield i'd be aiming for six and above but worst case scenario you get away with a five so we go off and buy a duplex we use what the 100k what's we buy duplex for 600. what's 10 60k legal fees stamp duty we're probably only spending 85 not 100 but let's just round it up again worst case scenario now yes you're doing lmi on this yes different people out there you're watching this video you probably have different views about lmi but whatever it's up like i've used lmi a lot worked out pretty well i believe in getting in the market when you can and you know as long as you've got a safety buffer and the right strategy so safety buffers include keeping money in the accounts like having a good strong cash flow no matter what the all these properties must have good cash flow yields of five six seven percent if the interest rates are three percent and your yields are six percent or seven percent even if they went up you still got a good buffer in there and you're buying good quality assets in metro locations so you've got an exit strategy if anything were to go wrong so now where are we at we're probably at like month 14 if i'm not mistaken month 15 we've bought a duplex and yes that's one purchase a little bit less admin little bit less stress but you bought two you got two residences there on one title yes but you've got two different tenants living there so you've got one two three four five six you've got six properties and it is 14 15 months so yeah this is just you know going through the rough basics now let's assume once again we bought it this property 10 under what it's worth which isn't that hard to do if you know what you're doing it's extremely hard to do if you've never done it before but that's where you can contact someone like myself me or another buyer's agent feel free but you've got to make sure that they walk the talk know this stuff and you know there's a reason why i go on uh current affair channel nine channel seven etcetera because i've done this many times before now before i go on to property number seven and eight i wanna remind you that when building my portfolio i've got 43 investment properties right now in different states sydney brisbane adelaide gold coast et cetera et cetera i did not only do this i did not just use equity this is showing you a this is a simple video you know formula how you can use 100k to buy 10 properties in three years that's all it is i've done this many times and i've bought even in the last 18 months like over a dozen properties i have i guess i'm just saying this because i want you to know whoever's watching that i've saved up genuine deposits i worked one two three jobs at a time to work my ass off and save up save up genuine deposits meaning you know if i'd work two jobs i'd save a whole salary in a year so every year i was saving like one or two deposits because i was living living frugal et cetera et cetera so building my portfolio to over 40 properties i didn't just use equity i i have saved up probably like 20 deposits you know i have used the other probably bought the other 20 using equity but i've saved up 20 genuine deposits over the last like decade so just want to let you know that i haven't just used equity there'll be a lot of haters that comment on this video feel free i don't care what you say but for the people that are out there that want to better their situation and invest in property and have a positive attitude this video is for you so we're back at property number seven and eight now we've got the duplex revalued take it up to ninety percent or eighty percent whatever and we pull out let's say we pull out the hundred k again roughly if you take it up if you get it valued at let's say seven hundred new ninety percent lvr or 80 whatever but you took out let's say rounded up to 100k we had a bit of money left over anyway but let's just say we got 100k again we go off and buy property number seven eight and roughly in that time frame if my memory serves correct we were at like month 15 six we're like about a year and a half let's say it takes two months to acquire this we're almost wrapped two years now and we go off and buy two more properties worth three hundred now we're at property number eight seven and eight as an example we've just recycled the deposits again and again and again so this isn't assuming just to pause for a second this strategy isn't assuming that the market's gone up this is just revaluing the properties and this isn't assuming that you've saved more money like between here and here is almost a year and a half two years so when i was doing the strategy i saved up as well i still work my ass off and can you continue to save if i have positive income from this one by four or five grand this one three grand four grand five grand that positive income that'll help you save you know but you've gotta if you're willing to sacrifice three years put your head down and actually do this you know you can do it a lot quicker right this is just a strategy but while i'm explaining this don't forget that you've got to refinance refinancing can be a pain in the butt so it's really up to the person who's doing this i did this strategy many times but i didn't take no for an answer when i buy these two properties at 300 bear in mind he's a top tip of the day as well if you buy property at 300 you can take this property right here to five different banks right let's say you go with commonwealth bank first fantastic but you go back in six months eight months if they only give you a valuation of let's say 320 because sometimes that gives you different valuations there's a range of value to all properties so what i've done what i've personally done before is take one property i take it to four different banks i contact a broker that has experience with doing this make sure you broker whoever is out there has six 10 15 properties you know themselves as well if you want to help with a broker contact myself put you in touch with my mortgage broker who's helped me and is part of the team here so they can order a valuation from like commonwealth bank westpac nab st george whichever one comes in at what other ones are market relative and actually selling at the time at 360 350 you you might have to refinance over to that bank so doing this multiple times yes you might have to refinance from westpac to commonwealth to st george to all these other things but i'm just trying to give you a heads up it can be easy but there is a lot of hurdles that you may overcome i've overcome a lot of hurdles to get to over 40 properties as you can imagine so yes it can be easy but you've got to have the right team around you and you've got to really you know persistent with it and continue moving forward so back to property number eight this was literally probably at the round two year mark or two in a bit year mark let's say there's a delay six months goes wrong and now it took six or eight months to get the equity out of these two because we only bought them at like year two anyway let's say there's a delay we then get the equity out finally after eight months or year or ten months because we've still got a year left before we hit the end of year three we get the equity out we go off and buy another duplex for 600 hypothetically so we bought a duplex for 600 and that's two tenants in it two different residences so we've got we've got 10 properties we've got 10 properties in three years 10 properties in three years now bear in mind as well with this formula with this strategy again they've got to have good cash flow good yield they've got to be bought under market value between 10 to 15 to 20 percent as an example to re-value property but in three years as an example guys if you can save as an example let's say hypothetically you can save 600 bucks a week in savings right 600 a week over a year 30 grand now if you did do that by the end of year 3 you'd have 90 000 that's enough to go off and buy at least one maybe two more right so you could go you could be a 12. and bear in mind guys at year three or year two and a half you've only took equity out of this property once if you really if you're really hungry and you really want to push your portfolio far and you're aggressive and you've built up confidence and you've built up confidence over the years you could go back refinance pull out more equity out of this because it's been three years think about what's happened over the last 12 to 18 months in states that have gone through huge growth cycles and are still going through like brisbane or adelaide as an example or sydney or whatever three years ago some of the properties prices were like 70 less than what they are today so if let's say assume there was growth during this three year period which i firmly believe is going to be continuous growth in brisbane and adelaide because there are very affordable metro markets compared to sydney and melbourne you could go back take another 100k out of that go off and buy 12 13 and then like you could do that multiple times i took equity out of properties two three times before it's not like you are able to do that if you loan to value ratios stack up and if you can get the finance so another part of this video before i let you go is a person's borrowing capacity you might be out there thinking well how the hell do you go off and buy so many properties yes i get where the deposits are coming from eddie but what about your borrowing power this strategy as an example like when i was when i got up to the first like 910 properties i was only on an income of average kind of income of like i worked two jobs but i was only probably like 80k 75k as an example but i worked two jobs at sometimes to get that so i got up to 10 properties plus at that kind of salary range if you're let's say making 70k 80k whatever it is you might be on that now you might be younger you might be on way more than that but you're borrowing capacity overall time again disclaimer i'm not a broker or financial advisor i'm not giving you financial advice here this is just simple strategies that i've used to grow my portfolio you can stretch your borrowing power you can go from the big tier lenders like the cba the westpac the st george etc and you can go down to the second tier lenders eventually like i got cut off with nab and st george and and commonwealth bank in the beginning then i went to the second t lenders and then worst case after you max out with the second tier you can go to the third tier lenders the 30 lenders are ones such as la trobe pepper money granite all those ones as an example yes they have higher interest rates yes there's pros and cons with all uh banks and lenders that you go to but you've got to have a strategic formula to go from the big bank to the second bank to the third bank so this is the video this is a strategy on how you can buy 10 properties in three years hope you enjoyed the video if you have any questions please comment below hit the subscribe button if you want to see more videos like this i hope this has provided a bit of insight into a small part of how i've grown my portfolio again if you can save genuine deposits along the way if you can save a deposit in a year by putting 500 a week away and you've got 25k at the end of the year you then want 25k and you can use it as a 10 deposit or whatever it is so there's a lot of variables in this video of course but this is just the basics of how you can go 10 properties in three years and it's possible because i've done it and a lot of clients have done this same strategy that i personally worked with myself jump on the website check out the testimonials for people who have done this strategy and of course again we're talking about buying existing properties here not off the plan not brand new properties existing properties below market value with high capital growth in metro markets with good cash flow bye for now thanks for watching guys i'll see in the next video hope you enjoyed subscribe hit the like button and i'll see you next time bye for now [Music] you