Renovation

The buy and hold investment strategy

By Todd Stevens

Just recently Bradley Beer CEO of BMT Tax Depreciation joined us to talk about property depreciation in a general sense.  Now Smart Property Investment’s Phil Tarrant managed to drill a little deeper into Bradley’s personal portfolio, a topic which he often keeps very close to his chest.

Bradley will take you back to his first property purchase in 2002 and share why he believes in a buy and hold investment strategy.  He will also discuss his thoughts on bank loyalty, variable versus fixed interest rates, and how to best cover yourself from financial risk.

Phil will also find out who Bradley has help him with managing his portfolio, why he recently stopped rentvesting, and his overall objective when it comes to property investment.

 

If you like this episode, show your support by rating us or leaving a review on iTunes (The Smart Property Investment Show) and by following Smart Property Investment on social media: Facebook, Twitter and LinkedIn.

If you have any questions about what you heard today, any topics of interest you have in mind, or if you’d like to lend your voice to the show, email [email protected] for more insights!

 

SUBURBS MENTIONED:

Georgetown
Taree
Mayfield
St Kilda

 

RELATED AREAS OF INTEREST:

Depreciation and what it means for you
3 sure-fire ways to accelerate your portfolio’s profitability in 2018
3 common mistakes when doing “DIY” depreciation
Tax depreciation: what investors need to know

 

 

 

 

FULL TRANSCRIPT:

 

Announcer:    Welcome to the Smart Property Investment Show with your host Phil Tarrant.

Phil Tarrant: G’day everyone, Phil Tarrant here host of the Smart Property Investment Show, thanks for joining us today. Going to have a bit of fun, I've got someone in the studio who I know quite well, when he starts talking his voice may sound familiar. He was on the show a couple of weeks ago, and he was chatting to me about depreciation and how the changes made in last year's budget has changed the way us as property investors can look to maximise our investments through depreciation. Go and tune in if that's your bent and you're obsessive and you like to know every single dollar and cent in your portfolio and how it's working for you.

            I do recommend you go and tune in, we went through some pretty complicated issues and concerns around depreciation and how you should be keeping it top of mind. Me for one, I got a valuable lesson out of it and I've moved it up my priority list of stuff I should be thinking about, as I spoke about in that particular podcast, it's normally a bit of an afterthought for me much to the chagrin of my accountant who beats me up about it often. So it's now sort of a key priority to make sure that amongst a whole bunch of different moving parts in my portfolio I want to make sure that my cashflow is as good as possible, so I've got a heightened approach on depreciation.

            But while he was in the studio I persuaded him to make an appointment with me to come back and talk about his portfolio, and often it's pretty hard to get this sort of information out of him, he keeps his cards pretty close to his chest. It's my job today to make sure that I can try and get some key details about this guy's journey as a property investor. Brad Beer, CEO, BMT Tax Depreciation, how are you going?

Brad Beer:     Fantastic Phil, great to be here.

Phil Tarrant: I see you've already taken your jacket off, so you're ready sort of to get naked here and unveil everything about this journey as a property investor. So this is not you as a guy who does depreciation schedules for Australian investors, this is about you, Brad Beer, property investor. Are you okay to talk about this?

Brad Beer:     Well let's talk about it, I've had a very interesting journey and managed to, through my time at BMT, to learn a lot from a lot of different people about property investing because I come along as a speaker about depreciation schedules to just about every seminar in the country. Well, not every one, but so many of them across so many spaces, and you learn a little bit, you listen a little bit, you formulate your own and you learn more. You go to another one and get geed up to buy the next investment property. I sit there starting to assess my own stuff when I got to these, so let's talk a little bit about that journey absolutely.

Phil Tarrant: Well that's good, 'cause I'm a very self reflective investor, I took your message loud and clear. You didn't say in so many words but it was more about, yeah Phil mate you've got concentrate a little bit more on your depreciation stuff. I'm always looking to improve as an investor, so it's important and I like you, I get a great apprenticeship in property investment because we have different stories. I talked a bit about investing, you've seen inside everyone's portfolio because you're doing their depreciation schedules. But we can all learn, you're I would say on the scale investing, you're a sophisticated investor. I know you've got a pretty reasonably large portfolio, I'm not going to go into details on it.

Brad Beer:     I'm pretty busy.

Phil Tarrant: You're pretty busy and I know you've got lots of stuff going in lots of different areas, and you've evolved from just buying meat, potato stock properties to doing some development and stuff. So let's start back at the very beginning, your first property. What was it? Where was it? Have you still got it?

Brad Beer:     2002 I purchased it, so I started with BMT still at uni in '97 and saved up in my, what was then, sorry '98 so only four years in. What was then my part-time work that turned into full time work fairly quickly, saved up. I had no backing, no money given to me to make it happen. Didn't really know that much, I had an interest, but then I started doing depreciation's and started learning and listening, hearing how to make money out of these things. So 2002, and it was probably a push from my ... That was the same year I became a shareholder in BMT, and a director, and it was probably my partners pushing me as well. They were doing it already and buying property. It's a four bedroom house in a suburb called Georgetown in Newcastle. My partners had actually looked at it, it has this great big shed out the back. So I still have the property and I think I love the shed the most almost.

Phil Tarrant: So you're a Newcastle boy, born and bred right?

Brad Beer:     Taree actually, I grew up a little bit further up, moved to Newcastle for uni and then had to move to Sydney part for work, and still seem to float between those of the world and the rest of the country around this business. 'Cause we're national but yeah so I bought this old, really old bad condition four bedroom house. With the old forever boards on it, when I pulled up the carpet it had newspapers from like 1914 or 1910. So I bought it, I went in straight away and started renovating. I was up at midnight pulling bathrooms out and doing all sorts of things. But it was $170,000 and about five or six months later I managed to get a drive by evaluation after renovating inside, I don't know how they do those when I'd only renovated inside, of $240,000. It was the first leap frog bit of equity, it was all pretty tight, there was a few things probably put on the credit card in that renovation. A lot of work done by myself, my mates etc through that period. That leapfrogged me and the ability to buy a second one, only six or seven months later I think it was.

            A little place in Mayfield that I paid, I think 210 or 220,000 for.

Phil Tarrant: Mayfield up, sort of Newcastle way again?

Brad Beer:     Mayfield’s another suburb a few blocks away and my bit of renovation done on that, and I did some myself and had some other help on that one. Still have that property, it's currently about to become vacant with about a $530 a week rental. I've done a bit of renovation then, and then a fairly major one about 18 months ago, where I sort of knocked a bit off the back and I think it's valuations at about 600, or 620 I think it was. The first one at Georgetown probably about 575 I think was the last time I had a valuation done on that.

Phil Tarrant: So Georgetown you bought for two, what did you say?

Brad Beer:     $170,000.

Phil Tarrant: 170, now six hund.

Brad Beer:     Now just under 600 I think is the latest valuation, and that's probably 18 months ago so it's probably a 600K.

Phil Tarrant: Mayfield, what was the purchase price again?

Brad Beer:     220,000 I think it was, it might have been 210

Phil Tarrant: Now 500 something?

Brad Beer:     600 was the last valuation, probably about 12 to 18 months ago I did a few refinances then.

Phil Tarrant: That was late 90's that you-

Brad Beer:     No, 2002 and early 2003.

Phil Tarrant: You've done pretty well out of it.

Brad Beer:     Yeah, those have done well and I then made a couple of mistakes and bought some land that I still have that's still vacant. On a surfing trip not far from home, me and my mate thought we'd buy some land, that sounded like a great idea-

Phil Tarrant: Are you talking about rural land?

Brad Beer:     No, house block of land, but it's in an area that was sold and hasn't necessarily performed very well. I still have the land, I really probably only have it because it didn't, probably slowed me a little, but it didn't stop me from other investments. I was build on them et cetera, hold them as investment properties but now they're not a major part of the portfolio. They're probably something you could unload but because I don't have to I haven't, I suppose. It hasn't stopped me from doing other things.

Phil Tarrant: So your first three purchases, is that more luck than really strategic identification of area you knew that was going up in value? Or a mixture of both? Or time?

Brad Beer:     Look I still, and I have a lot of my portfolio and we can go through and talk about some other of the suburbs that I've bought in over the next period of time. I still have a fair bit of belief in that area, and it's had it's slow times and it sort of mirrors Sydney a little bit, a bit later sometimes, which is kind of good. 'Cause it's almost a place that you can see a little bit of sometimes what happens. Would I say I knew the amount of drivers and things that drive property growth and value that I did back then now, no. I know more, I'd probably make different decisions. I knew the area a little bit better, I'd been there for a bit of time. I learned about the area, and the other thing was I needed to be able to grow equity by renovating.

Phil Tarrant: So you're talking about manufacturing equities.

Brad Beer:     Manufacturing some equity, I'd be then later always looking for the property that I could easily turn a two bedder into a three bedder. Kitchens, bathrooms and things that I could do some renovation. Revalue, get my cash back out of that, sort of so I could have the deposit for the next one, otherwise I couldn't keep going.

Phil Tarrant: Yeah okay. Subsequent to those first couple of purchases, a block of land that you purchased in the Newcastle area as well, when did you step outside into the big smoke, down to Sydney? Or go to Melbourne? How long did it take before you started moving into other markets?

Brad Beer:     Not for quite a while, I was then buying, renovating, revaluing, and I'd do these things where I'd then actually push my finance pretty hard and get 95% lends. So it meant that I could get all of my cash back out to drive again. The area was slow for a little while but I kept buying and renovating, and manufacturing. It was probably, ah probably five, not for another five years after doing a few of those that I managed to fall. This was probably more fall across something in Melbourne, through clients, that was a distressed necessary, so I just picked it up inexpensively. It was the first unit I bought, it's in Saint Kilder, I paid 360,000 for it, it was a fully furnished two year old unit. I'd already had a $400,000 valuation and a 550 not much longer. Haven't valued or touched that one for a while, not sure on its current value. But it's always consistently rented for $500 to $550 a week since then, so it's been a thing that yielded quite well. Has it been my best growth property? Probably not if I had to punt on its value now. But it did spread that portfolio a little bit. It took me a while.

Phil Tarrant: But you've never taken equity out of it?

Brad Beer:     I did once I think a few years later but I haven't for 10 years now effectively. So I generally am a ... I've always been someone who likes to revalue and make sure my equity is liquid. I push it back to offset accounts and so I run I think finances are very important part of your portfolio. Firstly being ready but secondly money on the way through gives you the control for the next deal. I don't need to gust the money from some ... I didn't need to ask the bank for the money for deposits or for renovations, or anything like that. I can make it very simple now, and it gives me more negotiating power when I want to do things that maybe the bank doesn't like, because maybe sometimes you don't need them.

Phil Tarrant: So we'll touch on the financing in a sec Brad, because I'm really interested in how you go about balancing all these different lenders. When you start getting a big portfolio as I speak about a lot, it turns into a big headache. But just take a step back quickly, you've spoken about the way in which you've gone about accumulating wealth through properties. So you're buying properties, renovating I.e., manufacturing equity, getting to a new valuation. Pulling that increased equity out, going again, again, and just leap frogging into each of these properties. It sounds as though you're not selling too many of them, so you're holding onto these properties. What's the overall objective for you for investing in property? I know like me, you like the game. You like being good at it, you like playing it well and winning. That's a good thing, but what's the real long term strategy for you?

Brad Beer:     Wealth creation is the reason to get into property in the first place, and that hasn't changed. Yes, I've liked the game, I've liked the renovations, not doing them. But the deal that you buy, renovate, turn into a better value. You end up with a better property means that I use a bit of my cash and a lot of the banks cash to actually leap frog through leverage into a higher value of property and with growth over time that's happened. Providing I haven't bought in really bad areas, in another 10 years the properties that I hold, most of them will grow again. Providing on the way through the cost to hold them is low, and I've been pretty careful on that from a cash flow perspective. To make sure that it's something that supports itself or produces some cash flow, and then the growth through leverage at the other end of that is sort of the cream where I make the wealth creation at a later date.

            Selling properties, I've never ... Sorry I have sold one property in all the time but it was one I owned in partners with people and we all didn't need it into the future. It was a commercial building, I've only got, that was one commercial, I've only got one another commercial building, which houses one of our offices. But the rest of it's all been residential property and then moved into some development property at a later day.

Phil Tarrant: How would you articulate your strategy? Buy and hold? But that's pretty base right? What is your strategy for property investment?

Brad Beer:     Buy, hold, control the cash on the way. Make sure it's something that's delivering to me, my ability to make decisions. It's not something that requires ... Something that makes me need to go to work to support, just for the future, but could be supportive of me on the way through. At the end of the day it's a play in producing, it's a wealth creation strategy for the future and for my family. Rather than just being a buy, sell, go through quick gains. I don't think, I think you know in quick growth times you can make some money quickly by changing. I think changing costs money all the time and you're going to go back into property again then make a good selection at the start. The passive ability to make income out of those things into the future, is quite attractive to me.

Phil Tarrant: So do you have a deliberate strategy in that at a point in time when you chose to have a choice to retire, whatever that means for you.

Brad Beer:     I'd be bored very quickly Phil.

Phil Tarrant: You'd be bored, I'd be much the same, but did you intend to ... So you're in this accumulation phase, so you're still building the asset size, at a point in time will you retire down the debt, have an unencumbered portfolio? When you chose to depart this great world you'll give it to the kids and say, here you, here's an asset don't stuff it up?

Brad Beer:     Well look I'd like to make ... The challenge sometimes is how do I make sure that, my children are three, two and 10 weeks, so how do I impart the things to make them learn when they've actually got a base there that's been passed on? That they can use that the right way, rather than hope they don't stuff it up. Teach them the fundamentals about the importance of treating it properly is what my challenge is effectively. I don't see me being a sell a bunch at the retirement, whatever that means phase, necessarily. Because I think maintaining the ownership of these properties gives me control of the ability to finance properties and providing the learning is correct on the way through, it doesn't need a lot of selling. It may need a bit of selling here and there to make sure it's exactly more sustainable than it could be, because for some reasons you've got properties that maybe don't fit in that as well. But even in building a few things, I've held them, rather than selling them off. When new is probably the premium time for your value, and has that bit of a slower period just afterwards because it becomes second hand and there's another new one two years later that's close. But I've held them because I want to hold them longer term than just that short period of time.

Phil Tarrant: So we've spoken about these initial few purchases, it sounds like there's a few of those similar properties so-

Brad Beer:     Oh renovations going, renovations going three at a time.

Phil Tarrant: Which is a headache in itself, and maybe we should have a chat about it at some point, but when did you start, and I know in my portfolio the more you buy the more sophisticated you get, the more you think laterally about what you're doing. You start getting properties with X factors with them, so there's upside opportunities should you chose to capitalise on it. To knock down, rebuild, develop, granny flats, all this sort of stuff. How far through this journey did you start getting a little bit more ambitious with some small scale developments or more trickier stuff I'll call it?

Brad Beer:     I'd say getting ambitious probably happened fairly early but it was about, but I think what I was fairly careful to do was to be a property investor and buy properties that worked as investments that had the ability to do something with them, otherwise from a development perspective into the future. Look I did buy with a partner two houses that had a DA attached for 12 units, around the GFC time. But I bought them as two houses, rather than a development site. Developers are forced to develop to continue, and we paid less for them and unfortunate for the developers that did what they did. But they put the DA on there, then the time wasn't right for developers but the time was okay for property investors. So we bought them as property investments with an upside, we ended up changing that into buying some more land off some people attached to it. Changing the DA and still retain some houses, and doing some major renovations on houses and building the units.

            But the important thing was that, or other properties I've bought since that had the ability to build another house in the rear. They were okay as property investments but they had potential ability and I wasn't buying them as a developer, I was buying them as someone who could develop them should I chose to. Or I could DA and potentially sell to a developer, but I've DA and I've built some. I've got a couple more to build that I need to do something before the end of the month, or the prices will go up. My DA's nearly run out, because I did them some of them some time ago. But I've never been forced to be a developer, which is a great position to be in, because it gives you some control over whether or not you have to do it.

            So I did it earlier but I didn't really ever go past that, in managing the risk of your property investing, how do I make sure I'm never forced by someone else to do something I don't want to do? Including the market effectively, and the simple residential properties that I still kind of believe in the buy, build that bit of equity quickly. Buy the right property, the right area, type strategy, I'd still do those tomorrow I'm just not out doing them at the moment necessarily 'cause I've been building and busy with the business instead effectively.

Phil Tarrant: So when it's all gone wrong? Have you really stuffed up along the way? You dodged that?

Brad Beer:     Land is probably my biggest stuff up but it was not a high value, it probably is worth more than when I bought it 13 years ago. But not much and not by as much as I paid in interest in owning it over that time. I'd definitely say I have properties that, hindsight's a wonderful thing Phil, that haven't grown as well, so therefore I wouldn't have bought that one. But there's not major amounts of stuff up there, I probably went back around my home town and bought a few that just didn't get the growth. I probably use that as an example sometimes that sometimes the smaller country areas just don't get the growth, 'cause they don't have the drive and the push for people. They've been okay cash flow et cetera but if I compare them to others I've bought in larger areas like my Newcastle stuff, which a lot of properties are at, around the suburbs. They've performed a lot better and they maybe cost me a little bit more to hold but they were manageable. Those ones maybe slowed me down a bit at certain times.

            I was pretty bullish for a long time in having a good solid crack at not being scared of having a crack, 'cause I think I started with nothing and on the side of that there's definitely times where I pushed it and had to push the finance to get through to make it happen through those times. But the mistakes are probably some of those and other than that the things have performed fairly well throughout the time.

Phil Tarrant: How would you explain your appetite to risk now? Are you a bit more subdued in your older age? Not that you're old or are you still giving it the crack?

Brad Beer:     I'm only 42.

Phil Tarrant: Oh you're young.

Brad Beer:     I just feel a little older all of a sudden there Phil.

Phil Tarrant: Are you still giving it a red hot go? Or are you sort of you haven't got the throttle down as much?

Brad Beer:     I'm still willing to give things a red hot go. I also am not the put everything on the next deal guy. Now earlier in those days everything on the next deal probably wasn't how bullish I was. But there wasn't much to start with, I've got a couple of few properties in the early couple of years that have grown in some value. There's some equity there and I would be prepared to take a bit more risk. But I think the whole way through because of finance it's about managing that risk and not leaving yourself too close. I'm probably bullish in different ways now but I've also got a good equity base. I think making sure I revalue, refinance and control the cash means that I make decisions before the bank does, ever.

Phil Tarrant: That's what you need.

Brad Beer:     If it does get hard.

Phil Tarrant: What sort of diversity of lenders do you have?

Brad Beer:     I would be relationship managed between all of the big four with some debt, and I would one, two, I would probably have about seven lenders.

Phil Tarrant: Seven different lenders?

Brad Beer:     About 15 different property managers, or 16, spread across different places. I've spread it between all the time and I've moved it sometimes, I move it with whoever's giving me the appropriate deals at the time effectively. I try to be loyal where possible but unfortunately our banks aren't very loyal. There's a new deal for the new guy that comes all the time, low interest rate. I'm the guy that's already paying my interest, how come you keep offering it to someone else?

Phil Tarrant: Don't start me on this.

Brad Beer:     So spread well across and I've moved them between, I'm always very careful that nothings cross collateralized. I say that when I do have one that I had to in the early days, and that's one of those blocks of land dammit.

Phil Tarrant: Oh really, yeah. Are you fixing your interest?

Brad Beer:     I'm not a fixer. I've been-

Phil Tarrant: Played the market?

Brad Beer:     Yeah, and I've been the only time I've ever kind of been burnt in interest rates was once when I fixed, when they were going up and they all came down through a GFC and I was paying three percent more, or two and a half percent more than everybody else. I only fixed part of them so not a major issue but at the time it covered some risk that I had. With the portfolio that if it all went up to 10% or something, that could hurt me from a cash flow perspective, so it reduced my risk. So I'm not necessarily a fixed one, I think generally when you do the math over time, a lot of the time fixing is quite similar. But you know that's because the bank understands the numbers as well, right?

Phil Tarrant: Banks are a lot smarter than what you are, they've got a lot ... They're boffins who sort out these actuary sort of guys.

Brad Beer:     It's a way to cover risk. Fixing is a risk cover where it's like, you know what? My expenses from interest are not going to go and increase beyond this in the next three years if I fix it there. So that buys you the time to be able to get through situations that might be hard or difficult then I'm not against it either.

Phil Tarrant: So we're running through a whole bunch of different scenarios here, what it means to be a property investor, and one question that we get a lot on this show is, how do you hold these assets? So you know you've spoken about long term wealth creation strategy, which potentially is an asset to pass onto your children. Did you hold these in trust structure? Or are they individual? How do you balance that out?

Brad Beer:     I've got them throughout multiple structures. Look first one in my own name, I moved across the structures fairly quickly. Company trust structures, my wife holds some, the debts some in my wife. As the director of BMT the assets in my own name are minimal, which is the strategy that the accounting people have suggested. Not that I live and think that because it's not there that you shouldn't do the right thing, but there's risk associated with business. People in their business make mistakes, so you want to try to cover those risks as best as you possibly can. I didn't set up a self managed Super fund till the last few years because I don't have a, I haven't invested a whole lot of money into Super. 'Cause I think they might change the rules before I get there, which they tend to do. But then in saying that, in recent years I've been, have made some more contributions and I think my accountant fell off his chair when I made a contribution a few years ago. So I haven't bought any self managed Super fund, but I do have separate structures for different properties that are company and trust structures.

Phil Tarrant: The question always is, why should you do one over another? I get asked the same question all the time, investing in trust structures is a little bit more complicated, a bit more of a headache. It's a bit more expensive, there's a lot of potential additional costs associated IE: in New South Wales you don't any breaks on land tax if you invest in trusts. So what works for you won't work for other people.

Brad Beer:     Once you've passed your land tax threshold, which you know.

Phil Tarrant: Doesn't really matter yeah.

Brad Beer:     It's okay, well I get one and my wife gets one and after that you pay. But I think it's an individual question and it depends on your circumstances and your future circumstances. The advice at the time based on people that understand that as best possible, may be best for you as an investor. That's different for different people I believe. But look the structures cost more, they're more complicated and some people just don't need it, depending on the type of who you are.

Phil Tarrant: Most people from what I've seen don't need it.

Brad Beer:     Well most people don't need it is probably right.

Phil Tarrant: So if you go back in time and grab a younger Brad Beer and grab him by the scruff of the neck and say, mate don't do this. Or mate do this, what would it be?

Brad Beer:     I saved too much of my first deposit because I didn't want to pay mortgage insurance, I suppose. Then I became like very good at paying lots of mortgage insurance, because it made me go quick. Now that's easy to say in hindsight because at the time I bought, the market was moving quickly and if I had to bought, two 12 months earlier instead of saving I would have made a lot more money. Now if you're buying in an area and it's going to have that, and unfortunately none of us have the crystal ball. But that would be one of the major things, is if I knew a bit more about finance and wasn't scared of the things associated with finance, like mortgage insurance then I would have made some more money at that early stage and leapfrogged quicker. That and just learning on how to control finance, property is the vessel that makes the money, but the money in finance is how you get there. Controlling of the risk associated with that and then being able to sleep with those risks. Some people can't sleep with debt very well, I'm fine. But I wasn't when I was 20 years old, I saved money to buy my first car and my second car, and probably my third car.

            Then you realise that you've just got to actually learn how to use these things properly as opposed to run away from that land while you're surfing and thinking it's such a great day, and such a great spot. Would be something I'd grab myself on the scruff of the neck of. Most other things about portfolio would be the benefit of hindsight and growth would change. Look I got a big land tax bill in New South Wales 'cause I'm heavily weighted in New South Wales. I see land tax as one of the costs of owning an investment property. What it means is that for me versus someone buying their first investment property in New South Wales, I've got another 50 bucks a week in land tax I've got to pay. But it's one of the numbers.

Phil Tarrant: What's the jewel to the Brad Beer property investment portfolio crown? Is there anything, which is like an absolute cracker that's going to do you really well in the future?

Brad Beer:     I've been a rent vestor up until only the last couple of years, at 42. The only reason I stop rent vesting is because I couldn't find what I wanted to rent, where I wanted to rent. I guess the wealth created out of my portfolio allowed to help that to happen effectively. What's the jewel? I don't see one jewel, the reason I say, talk about rent vesting there and one thing was I was never attached to any of the properties. I'm still not really attached to any of the properties, because I could always negotiate hard and even when I did buy a house I still wasn't that attached to it. So I was always better at negotiating.

Phil Tarrant: So you have a principle place of residence?

Brad Beer:     I do have a principle place of residence now finally.

Phil Tarrant: Yeah.

Brad Beer:     Not until I was 40 odd.

Phil Tarrant: I'm still managing the whole, I hate the term rent vesting, but I'm still holding out. So I'm still a renter.

Brad Beer:     Yeah, I started to do that because I had a property and living between places, bit of Sydney time, bit of Newcastle time meant that look what I did was find something that I wanted, where I wanted to be that was worth a lot more money and got a really bad return. So some other investor with a big tax deduction helped me to spend my time in somewhere beautiful near the beach instead of a crappy old house that I had to do up.

Phil Tarrant: Makes a lot of sense. Good story Brad, so you're going to keep at it? You're not slowing down?

Brad Beer:     The only slowing down has been around busyness and construction really. I've got a couple of build, which I'll get underway pretty soon. Houses on the rear of houses I've got. I've got another one or two to do after that, I might put something on that land if I redo the fees and it finally works once. Or maybe I should-

Phil Tarrant: Is it far from the beach?

Brad Beer:     No, not far from the beach. It's near a lovely river and a lovely golf area et cetera. But just you know. But look the thing is if it's a screamer I'm always open ears, when the markets flying forget about it, I'm not going to fight with everybody else. I'm only here because I've got the backing to be able to get the deals done. I'm here for the screamer deal that needs someone who can't get the money really.

Phil Tarrant: Sounds familiar. Out of everyone, other than yourself who's been integral to growing your portfolio, who's your number one A team person? Who's your go to guy, or girl for helping you sort stuff out?

Brad Beer:     It's always been my co workers that are in BMT, my business partners past and present that are living and breathing the game. They've either done it and been there, most of the time you know, throughout the industry the people I deal with all the time, that are good clients. I talk to them about things because I get to learn, but not many of them would know much about my portfolio because I don't talk to them that much about it. Talk to them a little bit about areas and I learn, and I see what's going on. But the deep, my business partners, I've got business partners that I'm in property with. We're partners together, we look at that any we look at the numbers sometimes together, and we go off and do things.

Phil Tarrant: Good, enjoy it. I think you've been very open and transparent about what you're doing. Lots of things that people can learn from, but I think what I take away from that is attitude is probably integral. So you've got to back yourself, you don't sound like a procrastinator so a lot of people are gonna, gonna do stuff. It sounds like 90% of winning is beginning, right? Is what they say. So you've got to give it a crack.

Brad Beer:     Right back to the start there was a bit more procrastination than necessarily needed but sometimes yes do the proper research and learn, it's not have a crack without covering your risks and understanding. But don't be afraid to jump in and keep having a crack on the way through.

Phil Tarrant: Wise counsel, I hope you learned something from that, I certainly have. I guess the book end of the chat, I've got one of the best jobs in Australia in terms of property investment, where I get to speak to people who are doing what they're doing. Often I look to learn or emulate and I think Brad has a story, which I think every listener can really draw somethings from. So I hope you enjoyed it, if you've got any questions about it email the team [email protected], I'll flick it over to Brad.

Brad Beer:     Happy to talk about property yes.

Phil Tarrant: You do enjoy property don't you?

Brad Beer:     I do yeah.

Phil Tarrant: If you tuned in beforehand, I think it was a couple of weeks ago when we had a chat with Brad, where we specifically spoke about tax depreciation, get that on your agenda if it's not. Listen to that, and again any questions [email protected]

            Brad thanks mate, lets get you back in, I think I'd love to dig down into some of this development stuff that you're doing. Because I know we sort of chatting off air that you do some pretty cool stuff, so see if I can uncover that as well. Remember to check out smartpropertyinvestment.com.au

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Announcer:    The information featured in this podcast is general in nature and does not take into consideration your financial situation or individual needs and should not be relied upon. Before making any investment, insurance, tax, property or financial planning decision you should consult a licenced professional who can advise whether your decision is appropriate for you. Guests appearing on this podcast may have a commercial relationship with the companies mentioned.

 

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