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Welcome to Creating Generational Wealth Through Property Investment with Gordon Green. Join Gordon Green, a highly successful property investment strategist, as he shares his wealth of knowledge and proven strategies that have empowered thousands of everyday Aussies to build a secure financial future through property investment. In each episode, Gordon delves into the secrets of property investment success, offering practical advice and expert insights. If you're keen to explore property investment, Gordon also works one-on-one with clients to craft bespoke property deals tailored to their unique needs. Tune in and start your journey to financial freedom today.
Welcome to Creating Generational Wealth Through Property Investment with Gordon Green. Gordon is a highly successful property investment strategist, and in each episode, he shares his knowledge and strategies that have helped thousands of everyday Aussies build a secure financial future through property investment.
Remember, Gordon works one on one with all of his clients, so if a property investment is something you're keen to explore, then Gordon would love to put a bespoke property deal together.
Hello and welcome to creating generational wealth through property investment with me, Adam Bell. Today, I'm introducing you to Gordon Green, an expert in creating bespoke property deals tailored to your recruitment goals. Now, as a licensed real estate agent and broker, Since 1973, Gordon has been in property investment field for most of his life, starting with his first purchase in 1965.
He's coached over 3, 800 participants through property workshops and has built strong relationships with developers across Australia. Gordon's purpose Passion is helping hardworking Australians retire comfortably through strategic planning and property investment. So let's dive in and learn from his wealth of experience.
Gordon Green, welcome to the podcast. Excellent. Gordon, what you, you probably don't know about property investment probably isn't worth knowing. I'd imagine having been in the game so long. Look, tell us a bit about your background and how it all started.
Um, sharecrop farmer, son out of a little town called Dagen.
And we grew up without much money. The farmer owned the money, we owned the, we did the work. And at nine my job was making cases for the prodgers, so I learned to work pretty hard. Thirteen my dad went to hospital forever and I moved into a boarding house while I finished my high school. Then mum come to Brisbane, I come to Brisbane two years later.
Got a job in a dealership, worked my way up to assistant accountant, then did a stint in the army. And when I came out of the army I formed a business with three other partners. We called it Business and Investment Consultants, but we really didn't have a clue what we were doing. I was an accountant, one of them was a solicitor, one was an insurance guy, and one was a stockbroker.
So we looked at dealing with people's total financial package. During that time we met a 62 year old bank manager and what he taught me about banking and property was incredible. But I wish I hadn't been such an arrogant little So and so. Because I knew it all, and I didn't really take a lot of notice of what he told me.
And, uh, the amount of mistakes I've made between then and when I got to about 50, when I started to get serious about it. It's incredible. I don't know how much money I left on the table, but it scares me to even think about it. Sure, sure. And I watch people still do it today. Yep. Where they have no understanding of what they're doing, and they listen to somebody else and go and follow what they're doing, and that person really doesn't have their interest at heart.
They're only interested in the money they're making.
Sure, sure. Which I think we hear a lot about with property investment, don't we, that, you know, a lot of people don't know. What they're doing like, like you've said, most probably and need some advice, need someone to, to follow. And as we know in life, everyone's got their own agenda and what they're trying to achieve.
And I think what you're saying there is, you know, there are a lot of people out there that, um, won't necessarily give people the right deal for them. Um, as long as the challenges they've
got, what they've got to sell. Whereas I don't have stock to sell. I have, A client that I sit with and work out what they need and where they're at.
And then I'll have a small program that sort of looks at what they've got now, what they've got, where they want to be by when, and that'll give me the percentage return they need to achieve on their capital, whether it be equity in the house or cash or whatever it is. And then we break that down into the three P's, which is property, product, which is your company or your business, and paper, which is shares and your superannuation.
And I look at where I can tweak those to actually get you up to the returns that you need to have. And most times, once a client's got a little bit of equity in their house, most times I can get a client retired in 10 years. Really? It's, it's pretty, once they know where they've got to do, it becomes a simple matter of not doing the stuff they don't want to do.
Right. That they shouldn't be doing. Okay. That's the hard part.
So this is quite different, isn't it, to most ways that I guess, you know, property investment firms and companies work. They've got their, their own stock that they're, they're looking to move. Is that the way it works? And then let's talk about how you do it differently.
Okay.
The average property investment guy out there is allocated a certain amount of stock out of an estate. He contracts with a builder to put houses on that stuff. And then he's got to go out and sell it. And it's really about what he's got to sell. It's not about what the client wants to buy. And when you look at the stats, 75 percent of first time property investors sell it within 5 years.
And 90 percent make a loss. Really? And, and the reality is it's because it doesn't really do what it needs to do for them and they get tired of waiting. Like I don't have a belief in buy a property and sit on it for 20 years and sorry I'll correct that. I do believe you need to sit on a property long term.
Yep. But I don't have a belief that for the average person to buy a property and wait 10 years for it to get enough equity to then be able to buy the next one, just doesn't work. So I try and work in a process where, I'm a bit of a tramp, I go where the money is, when renovations are able to work. I do renovations or refurbishments or rezones or repurposing and you might notice all those things start with an R.
That just seems to work. Yep. And uh, once we, like at the present time, I'm doing a few duplex developments because I can actually pick up a block, rezone it, redevelop it into a duplex, sell off one side and keep the other side. Yep. And I can do that about five times in four to five years. So the client ends up with four to five properties in four to five years.
Yeah. Which is a lot better than buying one and waiting 10 years for it to get an official and buy the second one. Sure.
So I can see what you're saying here that most, People think about buying their property, uh, sitting on it for a long time, waiting for that capital growth over a long period of time, which, uh, that's not the way you operate.
You look for ways of getting much bigger returns, in a much shorter space of time. It's, it's
about the timeframe. Sure. Um, and it's also about the, the return on your invested capital. I never look at yields on a property. To me, I can show you properties that have got 8 percent yields that have probably 10 or 15 percent ROI, or I can show you other properties that have only got 3 percent yields, but they've got 20, Because you don't need as much capital to get into them?
Sure. Or you're not tying up as much money? Sure. And with the duplexes we can use development funding? Which means the clients only got to acquire the land from there everything else is done until the end of the project. Yep. So, it's quite a different way of funding it.
Fantastic. And I think look, what, you know, having spoken and known you for a little while now Gordon, the one thing I love about what you do is that you work one on one.
With your clients. So, you know, a client would come to you, you sit down with them, don't you? You sit down and work out, like you said, they're, they're three P's and you talk about their goals. So you start with the end in mind and say, where do you want to be? When do you want to retire? Let's crunch the numbers through the system you've got, and then you'll go and find and put together the, a bespoke deal that works for them, that will lead to the next one to the next one that will eventually.
reach their goal of ultimately retirement, um, in a, in a much shorter space of time than going to one of these bigger firms that where you literally just going to buy a bit of their stock and wait for the capital growth.
Yeah. And, uh, it's interesting because most people, you can, if they've got a little bit of equity in the house and are prepared to take the steps.
And it's what holds most people back is the fear of debt, because they don't understand the difference between good debt and bad debt, and, uh, it's pretty critical. Absolutely. The number of people that I see on good incomes that have got heaps of bad debt and no real retirement benefit except for a little bit of superannuation.
And anybody that's relying on the superannuation to retire and is just living in a dream world. I mean, it's, you do the sums and you end up with four, five, six hundred thousand in your super account. How long is it going to last? Exactly. When you've been making a hundred, hundred and twenty grand a year, um, sums are pretty simple that last four or five years, and then you're trying to live on a pension.
So I look at it and go, well most people's planning doesn't exist. And they're either looking at dying young or living pretty tight. One or the other. And I know it's, I've been howled at for saying that, but that's the reality of what I see. So
tell me who are your, your perfect clients where, you know, if someone's listening to this, you know, who is the perfect person that you can really help, you know, accelerate their path to retirement through.
Your knowledge. Where are they at? What age? What's their demographic?
The ones I like to get are the 25, 30 year olds that are really wanting to make it happen. Right. Because they've got that drive and they really make it happen. The reality is the average person I see is about 45. Mm hmm. Kids have grown up suddenly off their hands and they've got a bit of spare cash and they go, Oh, we should probably start investing to retire.
Yep.
And it's probably, it's not too late, but it's like compound interest works over time. Sure. And everybody's seen a cent double every year for 31 days. Yep. It turns into about 10 and a half million. Whereas a day, a day 15, it's only 163. So they lose that first 15 years while they're educating their kids and send them to school, or mostly it's probably 25 years.
Yep. And then in the next 15 or 20 years, they're trying to accumulate enough to grow. And those people mostly have a bit of equity in the house. They've bought it a fair while ago. If they've been realistic with their spending patterns, they're not terribly in debt, and you can work with them and can make it happen.
Sure. Sometimes you've got to do a little bit of tweaking on some of the things they've bought or what they've done, but um, I try not to change their lifestyle. Yeah. That doesn't work. People don't want to do that. Yeah. Settled into a pattern. Good property will pay for itself. Yeah. If it's funded correctly, for sure, and I don't say that negative gearing is bad, but I say that the way negative gearing is funded most times is bad, because it's relying on the person to pay for it out of their pocket, and that's when things go wrong, because every month when the payment comes up, they've got to pull money out of their wallet and try and meet that commitment, and that eventually starts affecting their lifestyle, Which affects their relationship, and then it just all goes down the toilet.
Sure,
fantastic. Well look, I think again, one of the main reasons I really love what you do, Gordon, is that, um, you do, I mentioned before, but work one on one, and so you're basically a personal consultant to your clients as well. You're not just there to sell them. a property, you can give them your wealth of knowledge.
You can talk through the options that are available to them. You're there throughout the whole process and beyond. You're transparent, you're there and you stand behind what you do. And that's gotta be, incredibly, Secure feeling for anyone who deals with you.
My best client signs the paperwork and stays out of it until it's finished. Because that way I get to do what I need to do. And to me, it's a process. It's just get the deal tidied up, put it together. Then you've got to get a DA, then you've got to get the building approval, then you've got a contract with the builder to do it.
And different builders have different pricing at different times, depending on how much work they've got on. Yep. Um, I have a panel of builders that I work with that. The builder I like to work with most won't build duplexes, he reckons they're too much trouble. Um, but you know, that's just where it is at the present time, but put it all together, supervise the building, make sure that nothing's going wrong.
And when people are building, if they know what's going on, It's not much challenge, but a lot of people find building a real challenge because they're not realistic about their expectation. They don't understand what's happening. Dealing with a hundred tradespeople and suppliers, at some time, something's going to go wrong.
Yep. And the difference between a good builder and a bad builder is a good builder will be on top of it and get it fixed before the client knows anything's gone wrong. A bad builder hasn't got enough margin, so he'll try and cover it up. The problem doesn't go away, it just comes up later on. I'm a bit fussy about who I deal with.
I like to deal with those that I know are secure, aren't going to go bankrupt, haven't got too much work on their plate. and their supervision is consistent where it's the same person supervising the work with the same trades people doing the work.
This is where your knowledge and so many years of experience, uh, really come to the fore.
So, so you're saying when you do these deals and put this together for your clients, you manage the process the whole way. So through the building,
Through the acquisition of the land, through the design work, through the DA, through the building process, Once it's finished, some of the properties are rented furnished, so we put together a furniture package for them to get the maximum rent out of it.
And then we liaise with local real estate agents to get them either rented or resold, whatever we're happening to do, with the ongoing management. So, it's a, Total process right through.
Fantastic. Well, look, I'm really looking forward to delving really deep into all the ways you make this happen for your clients over the course of The podcast and all the episodes we do together Gordon, I know, in the next episode, we're going to look at all those R's that you mentioned, and I think there's seven of them, and seven ways to make money through poverty, and you've just mentioned how you do one, but, we'll talk through how you do it, you know, with how many options there are available, but, look, I think that's a fantastic way for us to end the first episode.
Make sure you do join us again, and, thanks for joining us today, and look, what I really love is your no nonsense approach to property investment and that you look after absolutely everything Gordon. So look, if you're ready to take your next step towards achieving your financial goals, reach out to Gordon directly, stay tuned for our next episode.
As I said, when we, uh, we dive deeper into creating the perfect property investment strategy for you until then take care and invest wisely. Gordon, thanks so much for joining us. Thanks, Adam.