A Money Mindset Shift To Access Infinite Returns
You might have heard property investors talk about ‘infinite returns’. The term conjures up images of rivers of wealth, but when you look at the b Invested philosophy, it’s more of a trickle that turns into a waterfall.
The concept is simple. Say you buy a property for $200,000 and rent it out for $300 a week, it may be neutral cashflow. But as that property grows in value to $250,000 or $300,000, you now have equity in that asset, which you can withdraw to use as a deposit for the next property. Then do it all again. And repeat, and repeat.
You can leverage into multiple properties and build a big property portfolio, without saving money for a deposit each time. That first initial deposit, therefore, is creating infinite returns.
Not many Aussies practice this approach however, usually because it doesn’t align with their mindset. So many of them have got equity in the property they own, which they may have bought 5 or 10 years ago, but they think they can’t afford to invest in property. They focus their mindset on needing to try and save up a deposit, when the capital could come from equity.
And on the flipside, not everyone is looking to improve their financial position. They may say they want to invest “one day”, but they just won’t take the plunge. It could be for a number of reasons. Maybe they are risk averse, or it may not suit their family situation at this particular point in time. Maybe they want to wait a year or two because they think the financial market is going to crash. People will always find reasons.
Control your destiny
Throughout 2020, b Invested was able to help a lot of people. There were so many new investors who were able to use the property they bought to pull down equity, buy another, pull down more equity and do it again.
A number of people even went from 0 to 6 properties in 2020 and joined a club of less than 18,000 Aussies with 6 or more properties. And that was achieved in just one year, starting with small amounts of capital.
In 2021, people should be looking at how to compound what they have already got. They should look to expand by leveraging that existing opportunity to get to where they want to be. That leveraging could be of time, of money, of resources, or of people. It’s up to the individual to figure out what that means for them and start to make it happen.
A lot of people may not know where to start, but with infinite returns, a lot of the risk is removed because you’re not having to go and save up that capital each time, you’re simply making use of something that’s already there to create multiple returns.
If you want help building your strategy, or with financing, or any other part of your property investment journey, please reach out to the team at b Invested on 1300 367 925, or email us at email@example.com.