Property investor MJ Anthony has worked hard to build an impressive 12-property portfolio, but he plans to grow it to 100 properties in a span of a decade in order to secure $500,000 in income each year.
Most people jump in the business of creating wealth through property to ultimately afford financial freedom and stability for themselves and their family or loved ones.
“That's why I've gone down the cash flow position, putting money in my pocket rather than costing me,” he told Smart Property Investment.
However, while many investors focus only on the value of their property portfolio to achieve their goals, MJ wouldn’t mind accumulating on the number of his real estate assets as well. In fact, he plans to increase the number of his properties from 12 to 100 in a span of a decade.
The property investor shares: “My big lofty goal, my big stretch goal is 100 properties, bringing in about $1.19 million of rent a year. Minus mortgages, minus cost of putting cash—[I will have] $480,000 [each year].”
Smart Property Investment’s Phil Tarrant said that there is nothing wrong with setting a big goal. “It [just] got to be realistic,” he said.
MJ plans to use his existing properties to eventually reach his goals. His advice for fellow property investors who dare to dream big: “Replace your income. Whatever your salary is, aim to have that as rent, gross rent—I achieved that a year and a half ago.”
“I know that there will be banks who'll go … ‘You can't do this [because] the properties won't value up’ and all these other roadblocks in place, but you've just got to think outside the square and get around it,” he added.
Moreover, he reminds property investors to enjoy their journey instead of competing with other investors or comparing their progress with others. After all, they are the master of their own domain. Many people may not be able to understand your “big goals,” but it matters most that it makes sense to you.
“[My friends] don't really get it, but when I show them the numbers, they're like, ‘Oh, that makes sense…’ So you have to prove it—this is what I'm buying it for, this is how much it's worth, here's an equivalent type property, and this is how much rent,” MJ said.
“But it's not for them because it's outside of their comfort zone—there are too many unknowns.”
“It's like, ‘Four hours’ drive, how are you going to look after your tenants?’ Well, that's what property managers are for. ‘Oh, okay, how do you look after your property manager?" Talk to them every week. Put in systems, checks and balances, and don't put yourself in a position of weakness," he concluded.
Tune in to MJ Anthony’s episode on The Smart Property Investment Show to know more about the investment strategy he hopes will grow his portfolio from 12 to 100 properties and secure him half a million in income each year.