Scott O’Neill from Rethink Investing has always been passionate about property investment in Australia. Since the age of 17 O’Neill has put everything he has into refining his buyer’s agent skills, and since retiring at the age of 28, he’s used that knowledge to help everyday property investors achieve his amazing level of success.
Whether private or commercial, split or whole, O’Neill has all the important lessons and helpful advice that you need to begin your property investment journey with a bang!
Discover all this and more in the podcast. So press play!
So I went to this Port Macquarie place. No one showed up. As I've said that we bought it for $425[K] it was renting for 800 dollars a week. So the cash flow for all costs on that was over $15,000 per annum in my pocket. But then I went back to the bank three months later and it got re-valued at $500,000. So it made $75,000 equity on top of that cash flow which leapfrogged me into another property.
Imagine being 28-years-old. Perhaps, you are working for that next promotion? Or settling down with kids?... How about being retired?... Would this be possible for you at 28?... I’ll let you think about it while I queue the music...
So what do you actually do in any given day?
I'll wake up and go to the gym or possibly surf in the morning. I'll wake up and then when I get back I look through my emails check what property agents have sent me over the last day or so. If there are any good ones in there I normally carry out a very thorough due diligence preparing for clients, and then I'll spend the afternoon actually just talking to my clients and possibly link them up with actual properties that suit their needs. And it's a very busy day that can actually involve travel. So I do travel often to certain parts of Australia, looking at these properties and then just have a relaxing evening. And that was pretty much just a standard day.
That’s Scott O'Neill and he is the director of Rethink Investing, a business that helps people see the numbers behind what they're doing. As a professional investor his mindset focuses on finding the best return on investment, but how does he do this?
So I grew up in that type of environment and I was always of the opinion of you know, let’s say you buy a café, you wouldn't go buy a café just to lose a 100 000 dollars to claim 30 grand back.
And that's sort of the negative geared mindset. I like the idea of making money during the year. So what if I have to pay a little bit of tax back now each quarter or at the end of the year, I'm still making more money than I was losing and that positive geared mindset was unique to our family, and I don't think that was one I had any influences from.
I didn’t read about it. I actually fell onto it with a little bit of luck. My very first property was in Sutherland in Sydney and it was a house and granny flat. It was an old house; wasn't the best street, but I paid 480 for it back in 2010 and it was renting for nearly 700 a week, and that was enough to cover all the costs even after all the mortgages all the maintenance everything was taken out. I'm still left with cash flow at the end of the year and I didn't really appreciate how good that property was at the time. But that was a classic lesson: if you get the right property at the start of your portfolio you can just go so much further.
Before building up his portfolio and business, O’Neill looked to a different career path. This coincidentally opened up exciting property opportunities and led him to where he currently is...
So I grew up in Sutherland Shire in Sydney and I went to school at Newington.
So it was a disciplined school and that took me into an engineering degree at uni, so I was a civil engineer. I spent two years building railways in Sydney and then the long hours and all that sort of pushed me towards, because I was working Saturdays and Sundays Christmas eve, New Years like whenever people are not on train lines.
I was working and that over a 40-year career sounded pretty, you know, it wasn't really the best direction to go. So I took another job but that took me out of Sydney into Port Macquarie. So I was managing like sand mines in aggregate mines and concrete plant so it is a different job but there was a lot of people management.
But the real benefit of that was it took me out of Sydney and it opened my eyes to property markets other than just Sydney. And when I was up there and I did purchase a property which will go into a little bit later I guess. But yes, spending three years out of Sydney was a very good experience and I then did an MBA at the Uni of New South Wales which I got three-quarters of the way through until I realized everything we were learning was basically unrelated to the business I was starting and there was just basically no use for it.
From these unsuccessful learning experiences, O’Neill started to focus on his true passion of property investing.
I then actually deferred that MBA and basically just concentrated on property investing in this business that I'm running, and that sort of leads us to where we are now and currently my business Rethink Investing is one of the fastest-growing buyer's agents in the country. Agency, should I say, and it's all just based on the exact same strategy that helped my wife and I quit our jobs at 28. And now we sort of travel around six months a year overseas and we'll continue to do that just using cash flow from different properties.
Of course, nothing can be achieved without a little hard work.
When I do travel I don't work, like I remember being in Greece last year there was an internet connection. Still means I can open up the emails and do a couple of hours in the morning or a couple of hours at night just catching up making sure everything was running smoothly.
An agent actually still sent me properties without me making phone calls so I never had to actually talk to these agents over the phone because I just send an agent a checklist of due diligence, make sure it's all factual and then run comparable sales reports myself. All of this can be done remotely.
So there isn't really a need to physically be in one place and now we're living in Greece at the time last year. Six months and cost of living there was because of basically nothing. I mean whether we're eating you know 10 dollars of food a day or 10 Euros a day and you know the cost just wasn't there. So there's no reason why you can't do it continually and that was a bit of a light bulb moment. We thought you know, why not chase the summers for a while.
With minimal work and endless summer, O’Neill had made his life the perfect ‘Four Hour Work Week’, as coined by Tim Ferris.
I actually did read that book a while ago and that was before I started any of this and there definitely I didn't appreciate it at the time, but I actually sort of saw a lot of you know a way of life that I wanted to follow. He was he's the first to sort of make it public I guess.
For O’Neill, property investment is a perfect way of life rather than a get-rich-quick scheme.
Like my wife lost her mother a couple of years ago and it really just made us appreciate life as well. And that's why we really stuck to it. You know most people end up just trying to forever expand a business or you know to chase the dollars. But for us, it's really about actually living the lifestyle that you know you wanted when you were starting out. And now we're we've got ties in Europe. So we do spend a lot of time now. We will continue to do so. This was never about getting rich, it was all always about being able to buy our time back. And you know cash flow is the only way to do that. Yeah. We didn't go into big developments and stuff like that because they're just time-consuming, we could have made more money in other areas.
But I know there was a lot more risk in those other areas and this is just a way to make money safely whilst keeping your time and know you'll be able to continually build off it as well, year after year.
O’Neill did not let early hurdles and pitfalls deter him from attaining his desired lifestyle.
So as a property investor I'd see myself as fairly conservative which might sound quite random because I own so many properties, but I bought my first property in 2010 which was actually a very negative year for Australian property and I always had the mindset that property was going down at the time. I was reading a lot of forums and everyone was calling you to know a 30 or 40 per cent drop in property prices. So it kind of is starting with a bit of a negative mindset and that pushed me towards positively geared property. And the reason for that was if it didn't grow that year I was still getting a return out of my investment via cash flow which made me feel a lot better about entering the property market, even if the time wasn't perfect, so I am basically a slightly negative based but that kind of just means I'm just preparing for when times aren't as great as they currently are, but I have a large mindset so I really like the idea of building large portfolios.
O’Neill’s first property was in the coastal suburb of Sutherland, but his first attempts at purchasing property were anything but calm.
So when I was 17, I remember talking to a mate and we were trying to buy a property together because one of our tradie mates that had been working for many years just got into the property market, so that excited me. I really wanted to get into the property. And obviously the bank just said go away, you've got no full-time job, deposits, not enough basically got rejected.
So I finally got approval when I was 22. So five years later I was working 4-5 days a week in bars and I was travelling at the same time. But even when I travel you know, we're in Canada, I was a chef, and I went to the Gold Coast for a year and I was working in the nightclub. So I was always working. So I was saving a deposit and when I was 23 finally got the property I was looking for - that was that Sutherland property which was positively geared. So I came up with a deposit at the time, it was 10 per cent of the property's value. So plus stamp duty - we got the first homeowners to grant so we didn't have to pay stamp duty. So basically got into that property and it was positively geared, so I was saving even quicker.
From this eventual, laborious success, O’Neill leapfrogged his way into the Australian market; making waves wherever he landed.
But my third property’s probably my favourite one because it was in Port Macquarie. This is another about, six months later, 12 months later I can't quite remember, and it was a mortgagee repossession sale. It was four units on one title.
And there was a price guide of half a million dollars and no one showed up for this option and ended up negotiating it for $425[K] later that night, bought it on the spot. It was running for $800 a week with four units on it. They were all renting out $200 each. And I went back to the bank about three months later and it got re-valued at $500[K] so that's $75,000.
You know, I basically had another deposit for another property; and then I went up to the Gold Coast at the time and bought a three-unit subdivision up there where I could actually strata title it. And again, it was just uncapping all this equity by just buying all these unit blocks. And I just kept repeating that and I bought another unit block up in the Gold Coast.
I bought a property down at Cooma which is four units down there on one title and then just got into some other stuff like renovators bought in Ipswich for like a house in the Gold Coast which could be renovated a little bit, cut the dual incomes in Brisbane which has upstairs-downstairs arrangements, basically like granny flat. But each time I was kind of acquiring another 5-10 grand cash flow a year. So this income is growing quick. Our first goal was to replace my wife’s income which happened pretty quickly after a few properties. And then the next goal I had - I was still working in Port Macquarie at the time - was to replace my income, and eventually, we did.
Eventually, O’Neill’s little pond grew too small, and he made his next big success in commercial property investing.
Then the business would start on the side and I would do more about my portfolio. I started getting into commercial. That was the next big step. I was really nervous because I felt like I didn't have the expertise like I did in residential property markets but commercial turned out to be better again. So I bought...my first property was a little supermarket in Perth. So it was a dead market over there. It still is. But it had a five-year lease on it and the tenant has never missed a payment.
And it was returning a huge amount. I bought it. Now the total price was six hundred twenty thousand that was renting for seventy-two thousand a year and they paid all the outgoings.
And then I bought a medical centre in Perth as well. Same deal, there's no one buying over there at the moment so it's kind of like a bit of a free ride in terms of who can dictate the price.
But everyone tends to experience a bad investing moment; as O’Neill recounts, of his earlier investing years…
So back when I was starting I was quite frugal. So every dollar I had to save, so that involves myself managing a lot of properties. So I was self-managing. And to take shortcuts I used to put Gumtree ads on. Because it saves money, it's basically a free ad compared to paying realestate.com and it all worked out pretty well. But I ended up managing about probably 12, 13 different tenants at any period of time and I was also doing an MBA, work full time and travelling from Port Macquarie to Sydney quite often, and then because I was not an expert rental manager a few of these tenants started turning bad because they were coming through the back door like Gumtree.
There's a lot of those people that get rejected from the mainstream rental agencies because they've had a bad past and some of them started going bad. So there was...I remember the first property I bought they had some drug addicts in there and they destroyed the house, and there was actually a mother in there and her kids were actually turning on her. So she vanished in the night. She was okay, she got taken by the authorities for protection, but the house was left in the biggest disastrous state I’ve ever seen and right at the same time there was a similar one going on at the Gold Coast as well.
So I basically had two horrible tenancy problems at the same time and to be honest, since then I haven't had any, and I've had over 100 different tenants over the years, and it's just doing it myself is just a mistake. It's saved me a little bit of money in the short term but in the long term, it costs me a lot because I had vacancies after these periods and I had damaged. I had to reclaim a lot back on landlord insurance but it was just probably the most stressed I've been.
From this worst investing moment O’Neil has definitely learnt the hard way that a man is not an island.
I basically just not to try to do everything yourself. Rely on experts like rental managers, this is all they do all day. Of course, they're going to know more about interviewing the applicants better than you. They'll have a database of their own and then they may even know rental details, so tenants that have previously left that they managed in their other properties. For someone to try to save you know 20, 30 dollars a week in rental management it's just short-sighted on my behalf. And it was a good lesson.
Conversely, O’Neill has had many ‘ah-ha’ moments in his years as a property investor, but his favourite will always be discovering the housing markets outside of Sydney.
That'd probably be when I went to that mortgage repossession in Port Macquarie. So the “aha” moment was when I was still Sydney focused, everyone and I ever spoke to kept saying buy in Sydney, buy in Sydney, because it's always going to go up.
It's the only place to be and I was of that belief at the time as well. So I went to this Port Macquarie place. No one showed up. As I've said that we bought it for $425[K], it was ranked 800 dollars a week. So the cash flow for all costs on that was over $15,000 per annum in my pocket. But then I went back to the bank three months later and it got re-valued at $500,000.
So it made $75,000 equity on top of that cash flow which leapfrogged me into another property. So that basically told me I'd be able to create equity quicker than I was earning it and also building a forever income because I wasn't planning to sell any anytime soon. It was the idea of holding these into my 50s and 60s and even longer, and imagine having an income of 15 grand and growing.
Even when I was 26 at the time and carrying it on - it was just you become obsessed. You say, I want 10 of these and then instead of 15 grand a year it's $150,000 a year. That's enough for me not to work and then I've still got a growing asset under that residual cash flow as well, and that was probably the light bulb moment, that I knew that I could still find good cash flow, it wasn't just sit in Sydney and do what everyone else was doing, it was looking around the country and just you can find good deals today. The very first property I bought renting for $700 a week I paid $480[K] for it. I can still find those types of returns today. It's not in Sydney, that's the only difference. It's just an eye-opening experience that one. Just look outside your own backyard.
It was just pure opportunity. I happily went to the bank when I knew enough about the area to put my money in there and it paid off by just putting time into it. I kept calling agents, finding out what they got coming up - and the letterbox drop does work, but you know you really need a lot of time and I was lucky to have a job where I was on the road a lot.
Scott O’Neill’s Cash Cows Are Bringing in Millions Every Year - Here’s How Yours Can Too!
For many first-time property investors, it can daunting to take that first action step into buying a property. For O’Neill, the negativity from the media on the property market certainly didn’t encourage him to invest.
So back in 2010, I used to read a lot of forums and it was just based off the mainstream media; when there was a property article, you’d see hundreds of comments under each article. Most of them were saying there was a 30% drop in Sydney or Melbourne that was about to happen. So as someone who'd never bought the property, I was extremely scared with the thought of losing everything I'd saved over the last five years and it was a dawning moment to even progress beyond that.
But my mindset was really around the idea of, if I bought a property that was giving me cash flow each year, then I wasn't too focused on the growth - if it grew it was a bonus. I always thought it was going to grow but if it didn't, I was still getting that cash flow because the rent was higher than all the costs. And that made me feel comfortable enough to put the time and my life savings into a property. And it's just like treating it like a little business. It was giving me enough income to justify putting all my money into a deposit and that was basically all that really got me started, and then I started forming my own opinions on property.
I saw the results myself, I started to know what was really going on, I started ignoring what the mainstream articles were all saying about properties and doing my own research and just getting more and more thorough as time went on. And the more research I did, the more confident I got to progress into different markets and, you know, this strategy never really changed, it was always to buy properties that give an income back and also have an upside in growth. If there was a chance to add value via equity and through renovations or subdivisions, that was a bonus as well. So I chased those.
They say if it ain’t broke, don’t fix it! Having built a substantial portfolio since purchasing his first investment property, O’Neill believes his mindset hasn’t altered much as remaining cautious has proved to work well for him.
When you've had equity to do things like development, or I've been looking at investing in the US at the moment. You know, you just get distracted a lot - buying a family home, we currently rent where we live and we don't want to change that, but it's very tempting to look at a family home all the time because it's just like a basic human need which you've got to ignore.
But sticking to the strategy has allowed us to buy more than most people. But if we went down those other angles, I think I would have made a mistake. So I'm kind of like a quite boring investor. It hasn't changed because it works so I just continually do it and there's no reason why we won't have 50 properties in five years’ time, doing the same thing. And that's just tough to not get distracted in the meantime because if we could buy a house to live in Sydney right now you can spend millions of dollars and all of a sudden your cash rate is going to be reversed and it'll be harder to get bank loans, then you are just going to be chasing bad debt instead of the good debt. Obviously renting instead of buying a house is very cheap as a comparison.
However, staying focused can’t always be easy. His secret to maintaining discipline is the time and effort his puts into accumulating investment properties.
I draw a lot of inspiration out of people like Warren Buffett. He's got those investor rules - rule number one, never lose money; rule number two, don't forget rule number one. It's just so easy to lose money in property. And we've got this strategy which I can't see a way of losing money, even if interest rates go up to 10% we're still going to be in the best position, compared to other investors who will hold through these higher interest rate times. The chances of losing money are very, very low and if we get greedy and just start chasing things like big developments and that developer goes bust, you can lose it all in one go. And it's taken us our whole life to build.
And that probably goes back to the whole, we value time more than the value of money and instead of just jumping into things. I'm not an expert, I just continue on this strategy and use that other time to travel and work on the business or chase hobbies and stuff like that, instead of trying to chuck it all in one basket to double it. I don't like that mindset.
Aside from Warren Buffett, Robert Kiyosaki’s Rich Dad Poor Dad confirmed what he already knew about investing and education.
Everyone always says Robert Kiyosaki, 'Rich Dad Poor Dad'. I read that, I started, but it really just consolidated what I thought. I had that mindset already. I didn't like education even though I was doing it and I was doing further education, I always knew there was something a little bit not right with it. Even my thesis I did for engineering - I actually did it on how little the actual degree related to the actual work you did, as a graduate engineer. Because everything they teach is theory, they don't teach about you know how to deal with people, or how to get a bank loan or anything to do with the real world. It's all theory and that bothered me.
So I really related to Robert Kiyosaki, because he not only spoke about the idea of acquiring good debt and about the idea of living a life a little bit different to what you’re being told to live - you know to get the degree, go work full time and then work until you’re 60, and hopefully, you've got enough in retirement to live a happy life. That model is broken and it has been for a long time; this investing was a way out of that old model.
Collecting advice from various sources and drawing his own conclusions has benefited O’Neill, which is why his property investing journey has been quite a smooth sailing.
The best advice would probably be just collecting advice from many different people. I’m someone that will always ask a lot of questions so I'll ask my friends, my father, about investing. Just get the opinions of 20 different people and come to my own conclusion. That has allowed me to never have a really bad moment in investing. I know I mentioned that I had a bad tenant moment, but I've never actually had a bad investing one - never lost money on a property yet and that's just because I'm really conservative, ask a lot of questions and make sure I don't bite off more than I can chew and don't make a decision until I fully understand it as well.
I'm looking to purchase in the US this year, it’ll probably take three months of research before I even get close to thinking about it seriously. And I probably won't do it, there's a chance it won't happen because I'll find too many problems with it. I know a lot of people might go in that direction and just go buy something over there - then you can make that mistake and end up selling it two years later.
The safe strategy O’Neill stands by is to invest in properties with high cash flow and those with good growth, at a specific ratio.
To go more into the strategy, that was really about buying in a ratio of two growth properties for very high cash flow. So my growth ones were good cash flow, they had a minimum 6% yield on them - so enough to just cover their cost and then one out of three properties was a cash cow. So I had an 8-10% yield on it, that could have been a commercial or unit block, or a house in a granny flat. That cash cow is very important even though that one may have not grown as fast as the two growth ones, that cash flow allowed the banks to still look at me favourably and obviously give me an income. Then also the capital growth was what created equity if I needed it to progress another one into another property.
So there was a very strict ratio of buying in two growth properties for every cash cow, but that is strictly saying those great ones still had good cash flow. So it wasn't like going to buy a 2.8% yield in a Sydney house, because that would just destroy my portfolio and the income. So it’s very rigid, very structured and that's basically what I still follow today.
It’s clear the strategy has worked for him! So when did he realise he was onto a good thing?
It was probably about the fifth or sixth property when I started having trouble with banks. They said ‘You've got equity here, but your incomes just weren't high enough to keep going.’ To get around that, I'd buy properties with very high cash flow. And then all of a sudden, at the time it just opened up the lending to squeeze that extra house in and that I had a great result there. A year later, the property is growing in value and the rents have all gone up across the board, and it allowed me to one step at a time move forward, and it didn't happen overnight.
Every single property we've ever bought had been tricky with the banks at the time, particularly when you get beyond 20 properties, the banks freak out sometimes and when they really look at the numbers and you start to get treated on a case by case example. I think the main message was, it wasn't easy. It's just basically buying the right properties that would keep the banks happy at the same time.
O’Neill says that it was important to have sufficient income while he was implementing his strategy to satisfy the bank requirements.
So having a good full-time job was central to this. I was getting paid well and that definitely helped me move quicker - I was getting paid more than the average income and that definitely contributed to myself buying a few extra houses than I otherwise could. But without a full-time job, I wouldn't have been able to get finance at the time.
So when I quit my job I basically didn't buy properties for a while until I had a lot lower LBRs on my portfolio and obviously the rents kept going. So without a full-time job, it would’ve been pretty much impossible to do this with the current lending requirements. But even after, nowadays because of the income, I've got the business and I can easily get more finance if I want it. But I'm more in a debt consolidation phase now.
It's pretty liable just because they introduced the new serviceability measures. I think you're up to 7.25 or 7.5% interest rates where they lend against and then they only include a certain per cent of your rental income. So I'm receiving $800 000 a year in rent. So you could imagine if they only count 50% of that, it goes down to $400 000. That basically will kill anything, so it's just the times are a bit trickier to lend, but these things will all swing around.
You know we're not finding any issues with getting further loans to the business income. With my clients that have jobs themselves, buying these same types of properties with a full-time job, that basically means they always get the loan - unless you've got a huge debt level which we'd advise against as well.
In a short period of time, he accumulated many properties, which was achieved by communicating with many homeowners in the Port Macquarie region.
In Port Macquarie when I bought that first one, that was just an auction open market. That's because the result of that was so spectacular compared to anything else on the market. I remember I was just driving around like I used to work there. So I would just write in my phone in the Notes section addresses of all the unit blocks, to the point where there was a hundred of them. Then I just printed off a letter and say I'll offer above market rate for your property if you sell it.
I dropped this envelope to maybe 80 different unit blocks, one came back and basically it was someone that had no idea what the value of their property was worth. It was five units in Port Macquarie - ended up paying $710 000 for it. It's currently worth around $1.2 million. That's where it started. I did strata title it as well, so we ended up putting a fire alarm system into it, putting in extra car parks, going through all the Council and that was just another $700 000 inequity on the spot - just by buying something off the market that no one else saw. No one really knew how to value it, because it was a unique product, but five units under one title in Port Macquarie probably would sell less than one of those a year.
It also tied in well with that market and that's the other side to it. I was up there for work, I knew they were building a highway, upgrading a hospital, putting a university in there. I knew there was all this infrastructure getting spent on top of that. So that kind of made the risk feel like there wasn't any. It was just pure opportunity. I happily went to the bank when I knew enough about the area to put my money in there and it paid off by just putting time into it. I kept calling agents, finding out what they got coming up - and the letterbox drop does work but you know you really need a lot of time and I was lucky to have a job where I was on the road a lot. So I used that time to drop envelopes off and say, ‘Can I buy your property?’
A person of routine, O’Neill also takes the time to set goals regarding both finances and lifestyle, which contributes to his property investing success.
I wake up and I make sure I check all the emails and everything because as I mentioned before we put a lot of time into getting these properties sent to us before they go online. So basically treating them as gospel and make sure you get back to the agent quick or whoever sold it to us and then present them to clients. So it's a real routine - an exercise in the morning, check what’s come across our desk, present them to clients and then basically we’re chatting all afternoon and can go quite late into the evening.
On another side, I set goals once a year - silly ones as well, like spend at least three months overseas, grow the portfolio by this amount set percentages and also track it month to month. So there's a little bit of goal setting involved, but goal setting around my lifestyle as well not just money all the time, which most people do.
This year, even things like a review - I spend at least a date night with my wife, at least three months overseas, I get to go to new countries and don't just go back to the ones that I like and feel comfortable with. I'm learning Greek as well. My wife's half Greek, so I want to be fluent in two years time. So I'm doing lessons once a week as well, via Skype. Just goals around that type of stuff.
So it's really just time away from everything and not falling into the same pattern everyone does. I know there's a lot of people in this industry particularly that spruik the lifestyle, but they don't actually live it. They're just smashing themselves behind a business earning more and more money and I just don't want to be in that ballpark with those guys. We actually want to live it and the people that we work with understand how we operate and it basically all works a lot smoother that way.
To inspire you to work towards your own goals of attaining financial freedom, he shares with us what he’s excited about being able to do in the near future.
We just got back from Singapore two weeks ago, but in less than a month we're flying to Europe and it sounds a bit silly, but then we’re going to the US - Central America and flying out of South America - so we'll be in five different continents over the next four months.
So that will be the priority for a while and we're also opening up a mortgage business as well, Rethink Financing. So we're going to specialise in helping investors get finance, so that's quite exciting. And honestly just continuing to improve and grow our business, the Rethink Investing business, and that's basically a hobby. I love the feeling of moving forward, everyone does. That's just the professional side. And then again next year - I'm not to keep talking about travel all the time - but we’re going to spend six months in Europe in 2018 as well and hopefully, by then, I'll be fluent in Greek so I can keep up when we're in Greece.
To put things into perspective, O’Neill also shares what his property investment portfolio is worth and how much passive income is generated.
Currently, it's around $11.5 million and the income is around $305 000 a year after all costs.
So there's about $305 000 thousand in rent and that's off of around $750 000 in rent. As an example, our interest bill is less than $300 000 so you can see that without a lot of costs in there to come up with that income, it's still $305 000 ahead. That's pretty much been the only thing I look at in my portfolio now, I don't really care too much what the total value is worth - it's about that income.
To connect with Scott O’Neill:
The best way to connect to Rethink Investing would be just emailed [email protected] and any properties we send you basically are the same types of properties that Mia and I and also the buyer's agents that work for me would buy themselves. So it's basically a very family-type deal. We will only ever send you stuff that we would be buying ourselves and that has allowed us to have a very fast-growing business. Word of mouth is how we get 90% of our clients; we want to work very one-on-one with you and contacting us via that email would be the best way.
Then we’ll just start chatting and work out what your goals are. We'll basically try to help you build a passive income and there are many stages to that - it might be involving high growth residential to start with, moving into high cash flow residential, then, later on, we might help you look at commercial assets because they're the real big kickers to get you that extra income. Even when you're running out of lending capacity, those ones can be looked outside the normal lending scope, sometimes. So we help you through all of that and would love to help you out if you email through.