Todd PolkeInvestment Strategist l Wealth Coach l Speaker, Todd Polke · Investment Strategist l Helping Investors and Business Owners grow their Wealth Faster

You're building systems! #shorts #australia #investing #money #life #finance

19 Nov 2024 · 1 min

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1:00

In this short monologue, the speaker outlines four essential keys to lending success, highlighting the third key—flexibility and liquidity. He explains how loan structures such as principal‑and‑interest versus interest‑only, fixed versus variable rates, and the use of loan facilities affect liquidity. He then illustrates the power of combining negatively‑geared, capital‑growth properties with high‑cash‑flow investments, citing examples that deliver 15‑20% returns, a hotel deal at 25%, and a birthing‑centre deal that starts with very high returns before settling at 10‑20%. By pairing these two types of assets, he argues investors can create a repeatable system rather than focusing on isolated deals. The overarching message is that successful investors should build portfolio systems that integrate both growth and cash‑flow components, rather than chasing individual property purchases.

Chapters

So to me, there's 4 different keys of lending success, right? The 3rd is all about your flexibility and liquidity, right? And so this is principal interest versus interest only. Do you do fixed versus variable? What about your loan facilities? Liquidity is one of the most underrated elements in all strategy. So, but if we have a negatively geared property that's designed to create capital growth for us, but then we go and get a strong cash flow opportunity, like some of the lending deals that I do with a bunch of my investors, we're doing 15% to 20% returns, right? We've got a hotel deal at the moment at 25%. Like, we've got the birthing centre deal that's doing, you know, huge, huge returns for the first couple years, then settling into a normal 10 to 20%, which is still incredible. And so we've got incredible opportunities where we can get this capital growth play plus this cash flow play, pigeon pair these 2 babies together, and guess what? Hey presto, you've got a system. So we can't get caught up in the individual deal, right? We've got to get caught up in the how that deal fits into the overall portfolio construct, and that's really, really critical to understand. So you're building systems. It's not about buying property, you're building systems.