Exploring The Financial Freedom Foundation Strategy

[arve url="https://www.youtube.com/watch?v=307hhWMg9HM" mode="lazyload" align="center" /] In this episode I sit down with Ben Everingham and we explore the Financial Freedom Foundation strategy (to be renamed) and what our thoughts are about it. This is really raw and fresh for us so it's a very candid look into our thought process. Book a free strategy session to secure your financial freedom foundation For those of you wanting the outline of this strategy without watching the video here are the basics: You purchase 2 properties valued at approximately $400,000 that rent for approximately $400-$420/week You build 1 granny flat on EACH of those properties. This will cost around $110,000 and should rent for around $280-$300/week Your properties are now cash flow neutral or positive You have a Principal and Interest loan over approximately 25 years The properties will now go on to pay themselves off. In 25 years when they are paid off you use the cash flow from the rental income to become financially free. By buying these 2 properties you have a financial freedom foundation. You know (bearing unfortunate circumstances) that you will be financially free in the future. You can now focus on living a great life and working in a career you absolutely love. You can also get aggressive and lower the time period from 25 years using multiple different methods. Invest in more properties to pay down debt faster, start a business, get a pay rise etc. Transcription: Hi Guys, Ryan here from on-property Dotcom Donohue and today I have with me none other than Ben Everingham. We are in the same room at the moment, which rarely happens. Usually we're just talking over the phone, but we wanted to meet up to talk about this new financial freedom foundation or two property strategy or we haven't quite worked out the name yet, but basically this is all fairly new for us, so because I just wanted to capture the conversation, we've had a quick convo about it but not a huge one and so we thought do something more casual today, kind of capture the essence of this idea because we really do think that this is quite revolutionary and could help a lot of people. Yeah. So Ryan, run me the other day, be safe for some of you that have been following us for a while. We've got the four properties strategy that we've been talking about. Um, but I'm on my way home and Ryan's like, I've got something amazing to talk to you about. Yeah, I like texting him. I was like, had this feeling in the morning. I was like, I'm going to have a good idea today. Something bad's gonna happen. So I'm like, I'm going to go for a surf because that helps my creativity in the surf. Like the idea hits me. I like run home from the setup. I like text Ben Unlike call me. I'm like, if you've got something on Kansas, can you call? And then like three hours later he texts me. He's like, dude, just go. You message. Unfortunately, or fortunately I have clients that I have to talk to as well, but Brian is building up, um, that. So Ryan's texts me and then we've talked in the up on the way home and I've literally got goosebumps about this concept because it means that every single person that we get to work with that follows the strategy will end up financially independent. Cashflow was, it just will take a little bit longer for some people and a little bit shorter for others. But we've been thinking about these figures in, in years now, me personally, and I've always been looking for a way that the average person like me can achieve financial independence in a relatively reasonable period of time without taking on too much risk or debt. And uh, Ryan's finally figured that out. Yeah. Well, and I'm big on the idea of simplicity. Like so many people talk about the logical way to make the most money through property and capital growth and flipping properties and complex strategies and things like that. But I also know a lot about people and how people get very overwhelmed about how we don't. Like, I am proof that people don't live on logic alone. Like I'm a very emotional person and we'll work off emotion and so something that you can line up with people's circumstances and people's emotions and changing lifestyles and stuff like that as well. Because even a lot of the strategies like capital growth where you negative gearing. Like what happens if you wake up tomorrow and you, you hate your job or you get made redundant or you get fired and now you're negatively geared to the hill and you've got an income coming in. So I'm always like on the idea of flexibility, simplicity and actually like playing to our strengths as people who have the notion rather than like trying to be vulcans will live long and prosper rather than Trinity Volkans and just live with logic only and infested with logic only try and find something that works with our emotions rather than against it. And I realized that someone who's bought some property for myself and a lot of property for other people that I've talked to, a lot of different investors and gone through all the ebbs and flows personally, that, you know, logic and emotion to things. But then there's also all the theater. It creeps up. There's all of the different influences in our environment. And so what I liked most about this concept is if I hadn't found out about it, um, you know, possibly 10 years ago or eight years ago when I was just getting started on my, I've done things very, very differently. I'm a mortgage broker that works out of our office and who's a good friend of mine, Adam and I was faking you about this after I explained it to him the next day. And he said, well, I've actually got a friend who's 25, he's got a couple of kids. And Him and his wife had been traveling around Australia for the last three years, nonstop because they realize this to property strategy. Three years ago he was working in the minds away when I bought these two properties. He know that longterm now that he's going to be financially independent, he's like, just happy to cruise while that independence comes to him without him doing too much. So it's not an easy strategy. You've still got to take action. And obviously no one wants to wait forever for financial independence. But you know, once you've locked it in, you can reverse engineered and speed up the journey of, you know, that's the second stage of it really. So for those of you who like have like four minutes in and have no idea what we're talking about, the strategy, which I call it the financial freedom foundation, but maybe renamed in the band name is similar to that. I don't know, that's not three words, but the idea is that you buy a few or a couple foundational properties that have good income. So two properties that we build granny flats on. So you get four incomes and basically they're positive cashflow neutral, good, and they'll go on to pay themselves off over 25 years. So you work hard and you buy them. And then the properties will basically take care of themselves and pay themselves off over 25 years. And at that 25 year point when they pay themselves off, rather than paying off the mortgage, that money now goes into your pocket and you're financially free. So the idea is that you accumulate a couple of properties in a shortish period of time. And then that will go on to give you financial freedom in the future by themselves. And so then where you've already set that up and now it's just up to you to decide, well, do I try and accelerate that? Do I try and grow that or do I just leave it and do I go on and live my life? And so if you missed the video, go on property.com dot EU for session five. Oh three if you want to watch them or detailed summary over there. Um, but that's the basic concept that we just didn't have the framework for, like we had all these ideas like kicking around and elements of all of this sort of stuff, but it just never came together in a cohesive unit. And for those of you that are a little bit more like me that likes the detail and the data to roll these out, it's very simple. If you're a first time and getting started in theK and have some cash in the bank or if you're more established and you have a couple of investments already or your own home with some good equity in it and you're earning 60 to 100 grand a year combined, this is a strategy that you can actually execute. It doesn't take hundreds of thousands of dollars of savings or income, which is why I love it. So the detail is really buy the first property. Maybe it's a $400,000 home that rents for 400 to 420 bucks a week and then go out and buy the second time. Again, 400 k that rents for 420 grand off 120 bucks a week. And then after you bought the two properties, go and add a granny flat on each of those. That might cost you $110,000. Not all that of your own pocket. The bank will finance 80 percent of that and then that $110,000, granny flat get you another $280 a week in rent minimum. So you do that twice one on each of the properties. So now you've got 400 k home plus 110 grand granny flat, so $510,000 worth of investment and you're getting, you know, what do we told them? $600 bucks a week, 700 bucks a week in rent. So you're getting a seven percent yield. You're also buying quality areas. We're not talking about buying regional properties in the middle of nowhere. You can execute this strategy in Brisbane, which we all know over the last 50 years has performed as well or better than Sydney and Melbourne from a capital growth perspective. So we're not trading growth for cash flow, but we are definitely looking for that cashflow elements so that you know, $700 a week in 15 to 25 years time turns into a pretty good amount of passive income if you don't have any other debts. Yeah, you want in a good area because if you're talking 25 years down the track, who knows what's going to happen in the next 25 years, right?