A high school dropout has revealed how he was able to amass a massive property portfolio worth $43 million in just over 10 years.
Sam Gordon, 34, found success thanks to his difficult job of moving bags of feed between drought-stricken farms in the Southern Highlands of New South Wales.
She started her impressive portfolio when she was just 19, with a two-bedroom unit in Wollongong purchased in 2009.
A clever two-part purchasing strategy allowed Mr. Gordon to continue buying homes until he finally quit his farm job at age 28.
He now has an annual passive income of about $2 million, with 60 percent of his portfolio value in stocks, and just signed the contracts on his 76th property.
Mr Gordon explained that his first key to success was buying properties in areas with high rental yields at a price below market value, acquiring houses “that most people wouldn’t touch”.
“They are usually very deteriorated,” he said. realestate.com.au.
‘Banks don’t usually lend me money because they are uninhabitable. I buy them in cash or with loans with very low debt and redo them.
Sam Gordon (pictured) left his job as a farm labourer aged just 28 after building up a huge property portfolio.
Mr. Gordon (pictured) earns $2 million a year in passive income and just signed the contracts on his 76th property
‘The trick then is to take out the capital I’ve created by refinancing the loan and use that money for the next project.’
The second key part of Mr. Gordon’s strategy is to buy only in areas where the potential rent is well above his mortgage payments.
I would put a lot of effort into researching high-value and growing areas.
“What I found to be a game-changer when it came to getting loans was becoming a rentinverter,” he said.
‘Banks view loans on your home as a liability, which limits what you can borrow. If you’re renting, it’s much easier to grow your investments faster.’
Mr. Gordon began saving for his property when he was just 16 years old and was earning $38,000 helping out on the farms.
He recalled carrying “putrid” smelling food in 40C heat and admitted he had no intention of doing so for the rest of his life.
“I spent all my free time renovating properties. Basically, it was my vacation,” he said.
After renovating the Wollongong unit himself, Mr Gordon was able to use the equity in the property to purchase another unit in Moss Vale.
He continued to use this strategy of renovating and improving properties himself and using the capital to purchase another and build the huge portfolio he has today.
However, Mr. Gordon does not buy just any house, as he prefers his investments to be free of structural problems.
He highlighted a difficult project in Perth where he had to replace the kitchen roof.
Mr. Gordon began saving for his property when he was just 16 and earned $38,000 to help out on the farms (pictured is one of Mr. Gordon’s homes before renovation)
Mr Gordon would renovate and improve his properties with his own hands and use the capital to buy another house (pictured is one of Mr Gordon’s houses after renovation)
Fortunately, stepping out of her comfort zone paid off: the property doubled in value, significantly improving her cash flow for future renovations.
Last year was one of Gordon’s busiest years as skyrocketing interest rates meant there were fewer buyers to compete with.
“I think if you’re clear about what you want to achieve with the property, you can start to formulate strategies that will get you there,” he said.