CFDA发布重要名单！这285人将决定医疗器械产品的分类

This week we’re chatting with Scott O’Neill, founder of Rethink Investing - a Buyers Agency that purchases both commercial and residential real estate across the country.  Scott and his wife, Mina, have quite the impressive portfolio; by age 31, their portfolio was in the tens of millions and just 3 years prior, at age 28, they'd both retired. Their investments generate a passive income that provides them with opportunities to travel 3 to 6 months out of the year. Scott talks to us about their journey to success, investing in the commercial property space and provides some tips on saving, assessing growth and property yield fundamentals.

His First Investment.

Scott’s first purchase was in 2010, a time when the US market had fallen and everyone was counting down until our decline. He found a property in Sutherland, that was 500 metres from the local train station. The property had 650 square metres of land and appeared to check all of the boxes. He was in his early 20s and already thinking about what the property would look like over the next 20 years. He took the following into consideration:

• It was a 40 minute train ride to  Uni (check)
• It was pretty close to the village (check)
• It had a granny flat that he could appeal to renters if the crash hit (check)

His method was a success and he was able to leverage the growth. To this day, he applies that same strategy, what he calls the “What If?” Strategy. “What If” there’s a wave of unemployment? “What If” there’s an economic recession? Can you assess if, under these circumstances, your property will be positioned well?

His Journey

Scott says that it was never about the money or a specific number of properties, he and Mina simply wanted to buy back their time. He wasn’t happy in his job, working as an engineer building rail lines and had a hectic schedule that took a toll on his health and often kept him away from his family and friends. When his wife lost her mother, it was a wake up call for them to start living the life they wanted, today. Working as a engineer provided Scott with a high paying job right out of Uni, and due to his schedule, he didn’t have a lot time to spend money. That combined with him working hard for pay increases and being disciplined with saving provided the necessary deposits for their properties and positioned them well for loan approval. He saw the market as a great opportunity, one that would work for him and not require him to work into his 60s

They were in their early 20s and their first objective was to find investments that would replace Mina’s income. Once that goal was met, they sought out opportunities to create additional income so that Scott could work less or seek an easier job. That easier job never came, they kept building upon their success and eventually, by age 28, made it to a place where Scott no longer had to work.

Scott says buying income properties, like unit blocks and those with granny flats, were key but the true success came from growth. While they bought high cash flow assets, it came down to the capital growth. They've had years where they exceeded a million dollars in capital growth.

Getting into the Business

Scott has definitely made his mark in the industry. He was named Investment Property Strategic Investor of the year in 2009, and has made BRW Fast 100, two years in a row - all of this before starting his Buyers Agency five years ago. He’s garnered so much success, that many people reached out for the recipe. He started helping friends and family, and as he began getting referrals, he realized that he could begin charging for his services. At the time, he didn’t know what  a Buyers Agency was. As he dug into it, he realized that he needed a number of licenses in the various states. After getting the necessary certifications, he started to grow organically, had some success with marketing via Facebook and grew quickly via word of mouth. Rethink Investing has also had a lot of success with repeat business, many of their real estate clients have come back for commercial investments or duplex developments.

In a short time, Rethink Investing has become one of the most well known Buyers Agencies in the country

Commercial Investments

Scott says that commercial investment are where the real income is, generating more than unit blocks. When making commercial investments, he targets the industries that can stand the test of time (for at least 10 years), such as storage facilities. He’s also purchased shopping centers, those with onsite parking, located in popular destinations, and with business that attract people (hair salons, doctor/dentist offices, etc). He say it’s important to take a full view of these investments as well, taking yourself and your interests out of the equation so that you can ask "What If?" "What If" the markets change or technology advances? Are those businesses still viable? "What If" there's construction in the area? Is there high enough foot traffic? "What If" this industry booms? Is here a likelihood of redundancy or market saturation? When thinking through the longevity of a business, Scott advises that medical and age care facilities are the ones that will withstand the test of time.

His Key Piece of Advice

Scott says becoming a frugal saver is essential. Once you have successfully saved, banks will lend accordingly. You also want to buy under your budget; if you’re broker says to buy at $500,000 then think about buying at $350,000. Having that wiggle room will create more opportunity for future investments and set the tone for you to treat your property purchase like a business. Ask yourself if the cash flow will justify the loan and if there’s an overall benefit to the property - if there isn't, move on. He also suggests staying open to different types of properties - essentially, don’t rule out the commercial space! He says this space has 40x less buyers than the residential space - certainly something to consider.

If you're interested in learning more, please visit: Rethink Investing or call our 1300965551. Scott says they'd be happy to give you an overview of the market's updates and let you know what their currently buying - all obligation free!