The Investor Lab

Asset allocation is a topic that is under-discussed in property, especially in terms of portfolio-building.  You see, while it’s a common term in traditional asset classes, it’s also an important concept to consider when talking about real estate… And basically, if you’ve ever created a plan or strategy to build your portfolio, you’ve already thought about how and where to allocate available assets. Today, we talk about asset allocation and take an interesting angle on thinking about capital allocation ratios and building your portfolio through a principles-based perspective. We also talk about why deal flow is not the problem…How the time horizon affects your property strategy…Why you should always go back to a “first principles” way of thinking…And so much more! See you on the inside!   In this episode, we cover: What do we mean by asset allocation? [06:12] 3 key components to a property’s success [07:49] Deal flow is not the problem! [09:20] Why 93% of investors never get past two properties, 74% past one [12:03] How to decide asset allocation in terms of your portfolio [13:37] Capital-to-debt ratio [15:34] Resources & tying in The Holy Trinity [21:42] Availability of assets in the marketplace [25:23] Borrowing capacity & allocating it to one or more properties [29:19] How the time horizon affects your property strategy [33:39] How emotional and financial fortitude affect asset allocation [37:46] A deeper look at time horizons [44:46] Always go back to “first principles” thinking [49:46] Supporting analogies [54:28]   Connect With Us: The Investor Lab Membership (https://theinvestorlab.com.au/jointhecommunity) Dashdot Buyers Agents Website (https://www.dashdot.com/au/) Limitless: The Renegade’s Guide to Building Wealth Through Property - Goose McGrath (https://www.renegadespropertybook.com) Ready to work with us directly? (https://dashdot.as.me/discoverycall)   If you liked this episode, please don’t forget to subscribe, tune in, and share this podcast. Thanks for tuning in!  See omnystudio.com/listener for privacy information.

Most - if not all - of us have a dream home we’re working towards. However, that property we want may cost more than what we can afford at the moment and so we feel stuck on what to do next...  And the thing is, none of us really want to keep renting forever. So what’s the next best thing? Rentvest. Today’s episode is all about rentvesting and how it can help you get your dream home faster. We tackle what it is, how it works and why it’s a good strategy to use. We also cover diversification, financial mechanics and thinking about your portfolio as a strategy to get to where you want faster. We also talk about reasons why you might want to rentvest…How people get confused when financial mechanics come into play…How to buy your dream home...And so much more! Tune in now and we’ll see you on the inside!   In this episode, we cover: Current state and changes in the property market [03:24] Scenario 1: Buying one $1M property [09:14] Scenario 2: Buying two 500,000 income-producing properties [14:00] People often get confused when financial mechanics come into play [16:29] A reason for why you might want to rentvest [17:27] 3 big reasons to rentvest [20:07] Lifestyle [21:25] Borrowing capacity [29:36] Diversification [30:33] Increase savings in cash [34:28]  So how do you buy your dream home? [37:07] Begin with the end in mind [40:11] Identifying your goal and committing to it [44:45]  Rentvesting key points [49:19]   Connect With Us: The Investor Lab Membership (https://theinvestorlab.com.au/jointhecommunity) Dashdot Buyers Agents Website (https://www.dashdot.com/au/) Limitless: The Renegade’s Guide to Building Wealth Through Property - Goose McGrath (https://www.renegadespropertybook.com) Ready to work with us directly? (https://dashdot.as.me/discoverycall)   If you liked this episode, please don’t forget to subscribe, tune in, and share this podcast. Thanks for tuning in!See omnystudio.com/listener for privacy information.

From the outside, investing in the commercial property market can appear complex and open only to those with large sums of capital. In reality though, this isn’t the case at all. The stakes may be high and there are risks involved that may put you off investing in commercial property, but if this strategy is right for you, everything is well worth the effort! Today, we speak with successful commercial property investor Helen Tarrant about commercial property cash flow and growth. We touch on her journey from running a salon to property investing, her definition of success, residential vs. commercial property, the risks involved and more. We also talk about whether or not growth in these kinds of properties is a myth…How much capital you really need to get started…Where people go wrong when investing in commercial properties…And so much more! Whether you are an aspiring investor or someone who already has a residential portfolio and you’ve been interested in getting into commercial property investing, creating more cash flow in your investment portfolio and how you should approach it, then you'll love this episode! Tune in now and we’ll see you on the inside!   In this episode, we cover: Helen’s backstory and work [03:01] Transitioning from running a salon to property investing [08:47] Taking a leap of faith on her first commercial property investment [11:34] Residential vs. Commercial property in the context of yield and risk [13:33] Is growth in commercial property markets a myth? [16:04] Commercial property capital growth in a flat market [19:28] Commercial property capital growth in a feverish market [23:00] How to monitor commercial property markets [26:58]  Understanding the risks of commercial property investing [28:08] How does residential fit into a commercial strategy, and vice-versa? [30:34] Where do people go wrong when investing in commercial properties? [34:30] Setting expectations and getting your mind ‘market-ready’ [39:29] How Helen defines success [40:59] The habit or belief that has shaped Helen’s view of the world today [43:15]   About our guest: Helen Tarrant is a successful commercial property investor who has, along with her husband, built a commercial property portfolio of over $10 million within 5 years. She holds a Bachelors in Law and a Masters in Law degree from Australian National University along with her real estate licence. In 2016, Helen started to teach commercial property investment through seminars all around Australia.   Visit Helen’s website: https://helentarrant.com/ Check out Helen’s YouTube channel: Commercial Property Roadshow   Connect With Us: The Investor Lab Membership (https://theinvestorlab.com.au/jointhecommunity) Dashdot Buyers Agents Website (https://www.dashdot.com/au/) Limitless: The Renegade’s Guide to Building Wealth Through Property - Goose McGrath (https://www.renegadespropertybook.com) Ready to work with us directly? (https://dashdot.as.me/discoverycall)   If you liked this episode, please don’t forget to subscribe, tune in, and share this podcast. Thanks for tuning in!See omnystudio.com/listener for privacy information.

Freedom is something most of us crave but often have a hard time achieving. Ultimately, we all want the same thing: to do what we want, when we want and with who we want. So, wouldn’t it be amazing to just have a formula especially made for you to achieve the life you really want? Today, we speak with award-winning property expert Bushy Martin about “the freedom formula”. We tackle why you should optimise the time you’ve got and what you need to look at in order to transform your life and get the level of freedom you want, while getting some practical and feasible life advice you can apply in your life. We also talk about utilising the R.E.A.D. concept to free up more time…What the freedom formula is in a nutshell…The 3 forms of strategies you need to get your head around…And so much more! Whether you’re a business owner, top executive, entry level, blue collar worker, wannabe-investor who aspires to pursue the freedom to live their life— this episode offers snack-able takeaways that you can digest and eat at your own time! Tune in now and we’ll see you on the inside!   In this episode, we cover: Get to know Bushy and his origin story [03:52] Experiencing a “Robert Kiyosaki moment” [09:48] Living by design [12:10] What is something that has significantly improved Bushy’s life? [13:51] Understanding yourself can change your life [15:23] Developing healthy habits as a foundation for building wealth [17:15]  How to optimise the time you’ve got [21:38] Utilising the R.E.A.D concept to free up more time [23:27]  Shifting from success to significance [24:47]  Helping people discover their ideal lifestyle [26:00] Commander’s intent vs. a linear plan [30:22] The 3 forms of strategies you need to get your head around [32:13] What is the ‘freedom formula’ in a nutshell? [36:40] The setup factors: value, interest & time [39:00] How can you balance growth and affordability? [40:45] From capital growth to cash flow: an investment portfolio management perspective [43:22] Being a passive-aggressive investor and selling labour-intensive income streams [48:11] The sustainability factors: affordability, mindset, income, network & strategy [50:53] Bushy’s book & dog charity [54:50] Leaving everyone you meet smarter and smiling [55:49] Advice for those just about to start their wealth building journey [57:34] The T.L.C. in wealth [01:01:24]   Link/s from the show: Visit Bushy’s website to get his book: The Freedom Formula To know more about success and significance, check out Episode 86: How to Find Success and Significance in Business and Real Estate Investing with Jen Du Plessis Check Investopedia for some technical terms: https://www.investopedia.com  Get property finance strategy through https://knowhowproperty.com.au/   About our guest: Bushy Martin is an investor, founder, author and media commentator, recognised as one of Australia’s most trusted experts in property, investment and lifestyle. As the founder of leading property finance and advisory firm KnowHow Property, Bushy has helped over 1700 time poor professionals secure more than $550 million in property to improve their lifestyle and replace their income safely, easily and affordably. He is the author of two award winning books, including the acclaimed The Freedom Formula: Live More, Work Less And Leave A Legacy and Get Invested: Do You Want To Live More Or Less? Bushy also interviews some of the world’s leading investors and high performers each week on his podcast, Get Invested.   Connect With Us: The Investor Lab Membership (https://theinvestorlab.com.au/jointhecommunity) Dashdot Buyers Agents Website (https://www.dashdot.com/au/) Limitless: The Renegade’s Guide to Building Wealth Through Property - Goose McGrath (https://www.renegadespropertybook.com) Ready to work with us directly? (https://dashdot.as.me/discoverycall) If you liked this episode, please don’t forget to subscribe, tune in, and share this podcast. Thanks for tuning in!See omnystudio.com/listener for privacy information.

With so much information available for investors and those just starting, there’s a tendency to get confused over which ones will actually help you invest well... And with such a dynamic and ever-changing market, there’s just as many opportunities to make significant gains as there are possibilities to make significant mistakes. So what information do you really need to know? Today, we speak with property expert Terry Ryder about how to make good investments for the long term. We tackle questions like, “Do interest rates really drive growth?” and, “Is the current boom in the capitals sustainable?” while getting a good look at the current Australian property landscape. We also talk about how to assess portfolio risks…Some economic factors that affect the property market…If a town’s size affects its investability… And so much more! If you are an investor of any type, shape, age or form and you’re thinking of buying real estate or trying to understand what is currently happening in the market to make sense of it all, you’re going to love this episode! Tune in now and we’ll see you on the inside! In this episode, we cover: Current trends shaping the property landscape [04:26] Do interest rates play a role in the national property boom? [05:17] Economic factors affecting the property market [08:12] The Inland Rail Link Project’s impact over the long term [11:10] Does a town’s size affect its investability? [12:46] How do you assess portfolio risk? [14:44] Understanding Macroprudential Regulation in the context of booming markets [19:17]  How to think about your investment strategy in the current market [23:52]  Are capital city prices really booming and is it for the short or long term? [26:45] The regional exodus trend & changes in lifestyle decisions [29:00] Defining & quantifying “lifestyle factors” in real estate [33:43] Assessing locations that are both cheap and lifestyle-centered [36:08] How to identify & analyse markets that are in transition [40:56] Is internet connectivity a significant hidden driver in the exodus trend? [44:52] Advice for people who are trying to make sense of this market [47:22] Should you focus on cash flow or growth? [50:48] Link/s from the show: Check Investopedia for some technical terms: https://www.investopedia.com  Connect With Us: The Investor Lab Membership (https://theinvestorlab.com.au/jointhecommunity) Dashdot Buyers Agents Website (https://www.dashdot.com/au/) Limitless: The Renegade’s Guide to Building Wealth Through Property - Goose McGrath (https://www.renegadespropertybook.com) Ready to work with us directly? (https://dashdot.as.me/discoverycall) If you liked this episode, please don’t forget to subscribe, tune in, and share this podcast. Thanks for tuning in!See omnystudio.com/listener for privacy information.

Everyone’s journey is different.  You might be a business owner experiencing wins left and right or you might be a property investor trying to navigate a frothy market that has a lot of hype and hubris. Regardless of your situation, it’s important to be able to assess risk, cut through the noise and make sure you’re making decisions to support your goals and give you long-term prosperity, enjoyment and happiness. The thing is, you don’t have to live a diminished, frugal life right now to have a lofty goal at the end of the road! You can live life to the fullest and still make decisions that will set you up for success in the future, not just today. In this episode, we talk about how to navigate thinking around making decisions for a sustainable business. We answer questions like, “Is now the time to accommodate risk?” and, “Should we spring for the fence without worrying about the other side of it?” and more. We also cover using profit to invest in innovation…How to make investment decisions…Minimising risk in business for sustainability…And so much more! See you on the inside!   In this episode, we cover: An update on life at the moment [02:52] Actively compound your wins [05:50] Gradients beyond Exponential [09:46] The industry is booming… so should you get into the market? [11:48] Should you start optimising for survival instead of maximum gain? [15:21] Using profit to invest in technology and innovation [19:45] Minimising risk in business for sustainability [27:55] Have a gameplan & a good buffer to prevent operating in fear [33:41]  How to make investment decisions [40:02] Remove short-term decision-making for sustainability [44:43] It’s not about making money - it’s about creating value [48:37] Don’t get caught in hubris! [50:51]   Connect With Us: The Investor Lab Membership (https://theinvestorlab.com.au/jointhecommunity) Dashdot Buyers Agents Website (https://www.dashdot.com/au/)   Limitless: The Renegade’s Guide to Building Wealth Through Property - Goose McGrath (https://www.renegadespropertybook.com)   Ready to work with us directly? (https://dashdot.as.me/discoverycall)   If you liked this episode, please don’t forget to subscribe, tune in, and share this podcast. Thanks for tuning in!See omnystudio.com/listener for privacy information.

Every so often, financial jargon gets thrown around and while they’re all actually used in the real estate space, they’re not always used in the right context. When you talk about Return on Investment or ROI, do you actually mean Return on Capital? And what is that about, really? Or perhaps you consider principal payments a burden when in fact, it’s actually PROFIT for your property?   If this sounds like you (or someone you know), this episode is exactly what you need to dive into. Today, we cover terms like Return on Capital, Internal Rate of Return, Debt Service Coverage Ratio or DSCR, what metrics to look out for, and get to the bottom of what they are and what they should mean to you as an investor. We also talk about the 2 metrics you should focus on to know if you should invest or not…The key to a healthy, growing business…Cash-on-Cash Return or ROI…And lots more. See you on the inside!   In this episode, we cover: Correct property terms used in the wrong context [05:10] Return on Capital vs Return on Investment [09:32] How about ROI vs Internal Rate of Return? [16:44] How to measure cash flow as it relates to investment [21:24] Explaining Net Operating Income [22:54]  Debt Service Coverage Ratio [24:37] Net Cash Flow or Net Yield [27:18]  Cash-on-Cash Return (also known as COI) [29:53] The 2 metrics you should focus on to know if you should invest in an asset [31:29] Circling back to ROI vs Cash-on-Cash Return [32:25] Principal payments are profits, not cost of debt [33:05] The key to a healthy, growing business [36:39]   Link/s from the show: Investopedia: https://www.investopedia.com  Property Metrics: https://propertymetrics.com    Connect With Us: The Investor Lab Membership (https://theinvestorlab.com.au/jointhecommunity) Dashdot Buyers Agents Website (https://www.dashdot.com/au/)   Limitless: The Renegade’s Guide to Building Wealth Through Property - Goose McGrath (https://www.renegadespropertybook.com)   Ready to work with us directly? (https://dashdot.as.me/discoverycall)   If you liked this episode, please don’t forget to subscribe, tune in, and share this podcast. Thanks for tuning in!See omnystudio.com/listener for privacy information.

If you own a home, or have ever thought about it, you have undoubtedly thought about how much the repayments are going to cost...It is natural then, to start thinking… “How can I reduce my debt!?”But… what if there was a way that you could actually use the debt in your home to fuel a powerful portfolio… And at the same time, reduce the cost of the repayments on your home? You see… Real estate is like a chess game with lots of pieces you need to move strategically to win, and if you enjoy pondering over these aspects of property, today’s conversation will be of real benefit to you. We share actionable items for homeowners and talk about the idea of turning the debt on your home into tax deduction, using it to fund your investments, why this strategy works well in this asset class, how to approach debt recycling depending on where you are on your journey, and who it’s for.  We also cover using your debt as leverage…Who you should speak to about using debt recycling as a strategy…Other ways to get equity out of your property for debt recycling…And so much more. See you on the inside!   In this episode, we cover: Why talk about debt recycling (and who is it for)? [07:06] The downside to owning a home [11:12] Debt recycling is a challenging concept for some people [14:24] How to strategically approach debt recycling [16:03] Why does this strategy work well in real estate? [18:41] Factoring in tax deductibility [21:24] How debt recycling makes good use of leverage in this asset class [23:27] Debt recycling is a good strategy, but be aware of its downsides as well [26:21] Who should you speak to about using debt recycling as a strategy? [30:57] Debt recycling is not a ‘chips & dip’ strategy [34:29] A game of finance with high stakes [38:44] Other ways to get the equity out of your property for debt recycling [40:00]   Connect With Us: The Investor Lab Membership (https://theinvestorlab.com.au/jointhecommunity) Dashdot Buyers Agents Website (https://www.dashdot.com/au/)   Limitless: The Renegade’s Guide to Building Wealth Through Property - Goose McGrath (https://www.renegadespropertybook.com)   Ready to work with us directly? (https://dashdot.as.me/discoverycall)   If you liked this episode, please don’t forget to subscribe, tune in, and share this podcast. Thanks for tuning in!See omnystudio.com/listener for privacy information.

The world of property is huge and full of ups and downs, and a lot of people are still in the fog when it comes to what is best for them and how to manage different aspects of their property journey. In this episode, we share our thoughts on things like interest rates, stock levels, what’s been going on in the property space, LMI and if going that route is a good fit for you. We also look briefly into New Zealand’s property market... Discuss whether or not property truly is for everyone…If there’s a line people need to meet before they get on the property ladder…And much, much more! See you on the inside!   In this episode, we cover: What’s been going on in the property front? [03:01] A look into New Zealand’s current property market [06:47] Is New Zealand trying to change their market, and will Australia follow their lead? [12:48] How are stock levels staying low despite Australia’s population decline? [16:07] How Harry Triguboff helped reshape Australia’s apartment market [21:06] The only way to go is up [23:39] Interest rates and where they’re headed [25:04] Managing rising interest rates & its effects [30:01] Is it a good strategy to buy property using LMI? [36:33] What is considered “hell week” for property investors? [46:21] Property investing can’t be for everyone… right? [49:24] What is the ‘line’ that qualifies people to get into the property market? [55:44] Property is not a one-size-fits-all [58:41] Buying property DIY poses risks that you should be ready to manage [01:03:04]   Connect With Us: The Investor Lab Membership (https://theinvestorlab.com.au/jointhecommunity) Dashdot Buyers Agents Website (https://www.dashdot.com/au/)   Limitless: The Renegade’s Guide to Building Wealth Through Property - Goose McGrath (https://www.renegadespropertybook.com)   Ready to work with us directly? (https://dashdot.as.me/discoverycall)   If you liked this episode, please don’t forget to subscribe, tune in, and share this podcast. Thanks for tuning in!See omnystudio.com/listener for privacy information.

It’s easy to mistake a cheap market for an emerging market. With multiple things to consider, how can you tell if you’re investing in the right one and not setting yourself up for a bad investment? Today, we talk about the 5 key metrics for selecting emerging markets. From defining what it is, how different it is from a hotspot, and why we should be talking about it, we unpack a lot - and mention some ‘secret sauce’ along the way. We also talk about risk profiles and making decisions around them…Why you should consider a market’s future supply risk…The factor of rental demands & vacancy rates…And much, much more. So jump on in and we’ll see you on the inside!   In this episode, we cover: Why should we talk about emerging markets? [04:23] Defining what an emerging market is [05:42] The difference between hotspot & emerging markets [15:05] Risk profiles & decision-making [18:46] What to look out for & understand when investing in emerging markets [25:34] Factoring in supply and demand [27:34] Considering a market’s future supply risk [31:22] Median rents versus median yields [35:26] Rental demands & vacancy rates [37:04] A market’s project pipeline & completion probability [39:32]   Link/s from the show: The ‘Hunting Hotspots’ playlist on Youtube    Connect With Us: The Investor Lab Membership (https://theinvestorlab.com.au/jointhecommunity) Dashdot Buyers Agents Website (https://www.dashdot.com/au/)   Limitless: The Renegade’s Guide to Building Wealth Through Property - Goose McGrath (https://www.renegadespropertybook.com)   Ready to work with us directly? (https://dashdot.as.me/discoverycall)   If you liked this episode, please don’t forget to subscribe, tune in, and share this podcast. Thanks for tuning in!See omnystudio.com/listener for privacy information.