The biggest concern I hear from every new property investor that walks through our doors at AllianceCorp, is always about cash flows.
Most of the clients we educate at AlianceCorp are your everyday Australian working families. They are on a modest income, they want to set themselves up for a comfortable future and they believe property investment is the vehicle to help them achieve this.
Every day when I sit with these typical Aussie clients, they want the same thing: a passive income of $100k from their investment portfolio in retirement (100k is always the magic number, not $80k, not $120k, nine times out of ten $100k!). For most clients to be able to achieve this, they need a portfolio of half-a-dozen or so properties. And when I tell the client this, they crap themselves.
The thought of buying one investment property is worrying enough let alone SIX???? They ask me, “Jason, what happens if I lose my job? What happens if I buy an investment property and I don’t get the rent I was expecting? What if the property sits vacant? What if interest rates rise? How am I going to manage? What if I can’t come up with the money?”
All totally valid concerns right – the last thing you want to do as an investor is be in a position where you can’t make repayments on your loans. You never want to be forced to sell your properties at any time other than what you have outlined in your Property Wealth Plan as part of your exit strategy.
So how do you purchase six or more properties on a modest income without worrying about cash flow changes? Let me tell you all about setting up a Master Facility, and some finance tricks that the banks will never tell you about. I need the whiteboard for this one, so watch my video all about addressing cashflow concerns: