- In this video, I'm gonna show you exactly
how I'm gonna pay off my mortgage
in seven years using the three properties strategy,
I did get some help from mom and dad
to get the ball rolling in the beginning,
but by the end of this video,
you're gonna see that getting help from parents
isn't about helping yourself,
but it's actually helping them as well.
You're creating a win-win scenario
where both parties come out stronger financially.
But in saying that, I have helped numerous clients
achieve the same results,
with very modest income around 70,000 as a single,
or 130,000 as a couple by three investment properties
in the short period of time.
Now to give you a bit of a background story.
We have dad, my mom, myself and my little sister.
Besides the fact that we look Asian,
I would say we're pretty typical Kiwi family.
20 years ago, mum and dad migrated to New Zealand
and bought their first home for $200,000.
Now, if you have ever gone to any Chinese takeaways,
and there was a kid standing
behind the counter on a stool punching numbers, that was me.
I pretty much helped out every day
after school until I got to uni.
Over the years, mum and dad bought and sold their property
to upgrade the house and improved our lifestyle.
My sister and I are forever grateful for that.
Now, growing up, I actually thought my parents
were doing very well financially
because they were very hardworking,
worked long hours, and they were very frugal.
By the time I finished university and started working,
we were living in a million dollar home
with just a small mortgage on it.
And it wasn't until I met this one client
who were younger than my parents had more kids earning less,
and they were buying their fifth property.
Using the exact strategy that I'm about to show you,
I realized, although my parents were very hardworking,
very frugal, they didn't have much of an investment vehicle.
When I learned that you can use the equity
in your property to invest in property without any deposits,
without any deposits,
I immediately jumped at the opportunity.
First thing I did was help my parents top up
on their property, because they have some accessible equity.
Now I'm able to use this as a 20% deposit.
Francis and I were earning around a $100,000 at the time,
and we bought our first home for $619,000.
The coolest thing about this property,
was that the rate covered the mortgage,
not only for this particular mortgage,
but also cover my mum and dad's mortgage.
They didn't feel any cashflow difference
by helping us doing this.
However, the rates and the insurance
did have to come out of my own pocket.
It was a nice first home,
but from an investment property perspective,
there was a lot of things I could have done better
and those lessons I would love to share
with you in the future.
But once I was able to do this,
I made it my mission to educate and help families understand
how this works and why they need to do it,
and I focused building a business around us,
in the next two years at a greater scale.
In 2017, I was able to use the same thing
by topping up on the second and first property
to buy a second property.
Now, this one had enough land at the back
for another house to be built.
And in 2019, I repeated the same thing topping up on equity
on both properties, and I bought a third one with a friend,
which has a block of units that achieve eight
and a half percent cash flow.
Not only did it have enough cash flow to pay for itself,
but all the expenses for everything else.
And so in 2020 using the same method,
I bought a home in income.
What this is, is two properties on one title
so you get two incomes.
Now settle just for 5% cashflow
because this property wasn't terrace, housing apartments,
meaning that I can utilize the land later
to build more houses on it.
Now by 2022, because I bought them at a very good price
in a combination of just the slight capital gains,
I would be able to restructure the first mortgage
on this property and load it up
into my investment properties effectively
become mortgage free in just seven years.
The coolest part about this though, is that by 2022,
there will be another house that's finished
on the first property and this property,
I will be able to transfer it back to my parents
and it would generate around $15,000,
passive income for my parents.
For helping me out, they have effectively helped
themselves as well.
Now to execute the strategy, you must remember one thing.
That is to plan out your financing strategy from day one
so you can avoid getting stuck.
Think of it like this.
It's kind of like that hand-eye coordination game,
where you need to take the stick
and slowly go through the wires without touching it,
because if you touch it, it will shock you.
Likewise, growing your investment property,
is like playing this hand-eye coordination game.
Instead of being just careful with your hand and eyes,
you need to juggle with equity and cashflow.
When you play this game,
if you miss up, you just get a shock.
But if you mess up your property portfolio,
you're stuck for three to five years
because the bank is not gonna be able to lend you more money
to keep your growth going.
Before you commit to any property strategy,
it's vitally important that you work out
your mortgage strategy.
You need to know where you are in terms of cashflow.
Are you in high cash or low cash flow,
low equity or high equity, then you can decide
which property strategy is gonna be best suited for you.
Now to learn more about the why,
and the mess behind this mortgage strategy,
join one of our free online master classes
using the link below.