Where buyers can find money to buy more properties.
With property prices hitting the ground and interest rates dropping to new lows, now is the best time to buy more properties.
But for many people there is one important factor standing in the way – money.
And as Nathan reveals, finding money to buy more properties could be as simple as reassessing your priorities and cutting back on unneeded expenses.
Nathan sold his cars to buy more properties.
Nathan Birch of Binvested is no stranger to skimping. Back when he started his investing journey he followed a dollar a day lunch diet.
His commitment to pouring every dollar into his investing stayed strong even after he accumulated 200 properties. At one point, he sold off $1 million worth of cars so he could secure his next big deal.
“I felt that the money was being wasted just sitting there when I could put it into buying different sorts of assets which were going to help me push forward.”
While not everyone has $1 million worth of cars that they can sell, many do have unneeded items that could be holding them back financially.
Got no money?
Nathan says a lot of people think success is about wearing expensive clothing labels or driving a Mercedes. But, it is possible to own these things while being in debt.
“There are so many poor people out there because their priorities are wrong.”
He says, a lot of people would have the money to invest if they changed their lifestyle and spending habits.
Here are seven things that could help you find money to do more deals.
1) Create a budget.
Do you eat out several times a week? Or, do you buy whatever you want, whenever you want without keeping track of your spending?
If so, creating a budget will help you identify just how much of your money goes towards unnecessary luxuries.
If you break down all essential costs such as mortgage repayments or rent, utilities, education and groceries, it is possible to see how much income is left for spending on other things. Then, you have a choice – whether to keep throwing it away on stuff you don’t need, or commit to a savings plan.
Once you identify how much you can put away each week, you can establish a timeframe for saving the amount you require.
2) Sell off unneeded assets.
If you drive an expensive car or have a boat you rarely use, why not sell it and use this to buy an income producing asset instead? Even if it sparks joy, it could be holding you back from achieving your financial dreams.
If you pour this money into building a foundation portfolio that will deliver capital growth and a passive income stream, you can consider buying that luxury item with the money you make from your investing.
“I have driven half a million dollar cars and I have driven $250 cars,” says Nathan.
While he drove cheap cars to get ahead with his investing, the wealth he created gave him the option to buy more expensive vehicles – and then sell them again to buy more property.
3) Choose the cheaper option.
There is always a cheaper option – why not take it? Instead of spending $150 on a shirt, buy a $20 one. Get a $150 phone instead of buying the latest iPhone. Instead of forking out every few days on groceries, buy things in bulk when they are on sale.
Every $50 you save is another $50 you can invest.
4) Work a second job.
If you really want to get some money to invest, why not spend evenings doing casual work? You could drive an Uber, tutor students, or do whatever it is that you are skilled at.
Nathan himself worked two jobs in order to get started as an investor. A few years of hard work meant he could accumulate enough properties to build a passive income stream and tell his boss where to go.
5) Borrow money from a relative.
This may not work for everyone, but there are plenty of people out there who have started their property journey by borrowing money from a family member.
If you do decide to go down this route, make sure each party seeks independent legal advice before drawing up terms and conditions that are fair and reasonable.
6) Pull out equity from your home to buy more properties.
If you have a house that you have been paying off over the last ten years or so, you may be able to pull out equity and use it to purchase some investment properties.
According to Nathan, there are a lot of people who don’t realise what they can achieve by using their home as a springboard.
“A lot of people misunderstand their actual position because they don’t look at it hard enough.”
“You need to look at it from every vantage point,” he says.
Remember to do this with a well-thought out strategy in place that will minimise risk and help you create further equity. Nathan recommends buying properties that are below market value, with a good upside for growth and a neutral to positive cashflow. Buying in metropolitan areas will reduce the risk of negative equity and prolonged vacancy periods.
If you need help pulling out equity, get in touch with our team of financial strategists at Zinger Finance and they’ll be more than happy to help.
7) Think strategically.
At Binvested, Nathan has seen people who thought they couldn’t buy anything for the next five years. However, once they looked closer at their situation and the options they had, they ended up buying five properties within a few years.
Sometimes you might not have much capital to invest, but if you can secure one good deal, it can help you get to the next one and the next one after that.
But, it is important not to leave this to chance. Each property you buy needs to have a purpose and a place within your portfolio. Not all properties will help you achieve a subsequent purchase.
Nathan says if anyone needs help developing a good investment strategy, he and the team are happy to chat.
“We specialise in helping people find ways to make things happen,” he says.
So, if you really want to make things happen in your life, why not give us a call?