🏘 How This Apprentice Built a $10 Million Portfolio By 28 - Thomas Lindsay 🏡🔥🤠🤝

Name: 🏘 How This Apprentice Built a $10 Million Portfolio By 28 - Thomas Lindsay 🏡🔥🤠🤝
Uploaded: 2026-02-04T22:30:34.000Z
Duration: 3 h 26 min 2 s

Oz Property Investors: An Investor Story with Thomas

Introduction to the Session

The session features Thomas, a 28-year-old investor with a $10 million property portfolio, despite not being a real estate agent or having a brokerage.

Hosts Steve Polisi and another participant express excitement about the session and share personal anecdotes about family life and travel.

Expectations from the Session

Discussion on what insights can be gained from Thomas's journey in property investment.

Steve emphasizes that many viewers doubt the possibility of building such a large portfolio on modest income; he plans to unpack how Thomas achieved this.

Thomas's Background

Thomas shares his humble beginnings, stating he was an average student who loved sports but wasn't academically inclined.

He recounts his father's ultimatum regarding finding work after school, which led him to pursue a plastering apprenticeship instead of working at a grocery store.

The Value of Trade Skills

Thomas reflects positively on his choice of trade, indicating it has been beneficial for his career and financial success.

He notes that many high-net-worth clients in property are tradespeople, highlighting the lucrative opportunities available in Australia’s construction industry.

Insights into Trades and Employment Trends

Emphasizes that there is significant demand for skilled trades like plastering, which can lead to high earnings.

Discusses how educational institutions often push students towards university rather than trades, suggesting this should be reversed due to job market changes influenced by AI.

Health Scare and Life Changes

Reflections on Life Choices

The speaker discusses engaging in youthful activities, such as partying, before experiencing a significant health scare.

After having wisdom teeth removed, the speaker discovers an allergy to codeine, leading to severe complications.

Following surgery for suspected appendicitis, the speaker faces a cardiac arrest due to medication reactions while family members are present.

A doctor’s lack of response when asked if he was dying highlights the gravity of the situation and the emotional turmoil experienced by his family.

This near-death experience prompts a reevaluation of life goals; the speaker realizes he has no ambitions at 20 years old.

Pursuing Business and Property Investment

Motivated by his health scare, the speaker decides to start his own business and recognizes the importance of owning property first.

He reflects on familial advice regarding saving for property investment as a foundation for future endeavors.

The desire to secure financial stability drives him to save money for property before launching into business ventures.

Challenges in Property Acquisition

The speaker shares that he actively searched for properties from ages 20 to 22 but faced challenges with bidding wars and market prices.

He recalls feeling priced out of desirable areas in Adelaide during this period despite being determined to invest in real estate.

Reflecting on past prices, he notes how properties were once affordable compared to current market conditions.

Overcoming Obstacles

The main barriers included securing lending and accumulating enough deposit funds while still being relatively inexperienced in property investment.

His strategy involved attending auctions with hopes of negotiating favorable deals amidst competition.

Breakthrough Moment

A pivotal moment occurs when he finds a house in Bridgewater just as COVID impacts the market dynamics favorably for buyers.

With assistance from his father's brokerage team, he secures financing and purchases his first property at $535K, marking a significant milestone in his journey.

Six months post-purchase, he expresses surprise at how few people engage in property investing despite its benefits; this realization ignites a passion for learning about real estate.

Resources and Community Engagement

The speaker mentions joining Facebook groups focused on property investment as part of his educational journey.

Understanding Property Investment Strategies

The Importance of Learning from Others

Engaging with podcasts and other resources can provide valuable insights into property investing, helping to navigate the vast amount of information available.

Adapting strategies is crucial as the property investment landscape changes rapidly; flexibility in approach is necessary for success.

Overcoming Analysis Paralysis

Many investors experience analysis paralysis, which can hinder decision-making; setting a straightforward strategy can help overcome this.

Reverse engineering goals through basic mathematics allows for a clear path to achieving investment objectives.

Decision-Making in Property Acquisition

Focus on making informed decisions about each property acquisition while considering future investments and potential developments.

Initial confidence may be lacking when starting out, but gaining experience over time leads to more complex projects like renovations or subdivisions.

The Role of Luck vs. Hard Work

While luck plays a role in finding good deals, consistent effort and research are essential components of successful property investing.

Real estate investing involves diving into unknown territories; practical experience is invaluable compared to theoretical analysis.

Personal Experiences and Support Systems

Building relationships with real estate agents during the search process can significantly aid in navigating the market.

Emotional support from family members can bolster confidence when pursuing investment opportunities despite financial risks.

Starting a Business and Real Estate Journey

Taking the Leap into Entrepreneurship

The speaker describes quitting their job without a backup plan, which motivated them to aggressively market themselves to builders and secure work.

Transitioning Focus from Property to Business

After acquiring their first property, the speaker shifted focus to building their business, acknowledging the challenges of obtaining financing as a new entrepreneur.

Realizing Property Value Growth

A call from the real estate agent revealed that the property had appreciated significantly, increasing by $150k-$200k, sparking renewed interest in real estate investments.

Collaborative Investment with Partner

The speaker proposed teaming up with their partner to purchase another investment property after discussing their financial gains and equity from previous investments.

Strategic Property Acquisition

They successfully purchased a property in Boughanna for $550K at auction, highlighting its potential for development due to its large land size (2,500 square meters).

Building Wealth Through Real Estate

Development Potential of Acquired Properties

The Boughanna property is currently a three-bedroom house but has the potential for five dwellings upon redevelopment, indicating significant future value.

Understanding Market Dynamics

The speaker reflects on how they acquired properties at undervalued prices compared to current market estimates nearing $1 million due to development opportunities.

Long-Term Commitment and Patience

Emphasizes that building wealth through real estate takes time; it took nearly two years between acquisitions while focusing on business growth.

Navigating Financial Challenges in Business

Leveraging Equity for New Investments

Discusses using equity from existing properties combined with their partner's borrowing capacity to facilitate further purchases despite initial lending difficulties faced by small businesses.

Balancing Business Growth and Investment Opportunities

Highlights the importance of making strategic decisions about when to invest versus focusing on business operations for sustainable growth.

The Trade-offs of Investing Early

Sacrifices Made During Investment Journey

Reflecting on personal sacrifices made during this journey; despite having cash flow positivity from day one, limited borrowing ability hindered immediate investment actions.

Exploring Alternative Strategies

Suggestion that there are always options available such as joint ventures or partnerships when facing financial constraints in investing.

Lessons Learned Along the Way

Balancing Responsibilities and Opportunities

Discusses how personal circumstances (like family responsibilities vs. living arrangements) can influence investment strategies and risk tolerance levels.

Recognizing Risks in Property Investment

Acknowledges that not all investments yield positive outcomes; poor location choices could lead to financial strain impacting both personal life and business viability.

This structured summary captures key insights from the transcript while providing timestamps for easy reference back to specific moments in the discussion.

Financial Discipline and Property Investment Journey

Sacrifices Made for Goals

The speaker discusses significant sacrifices made, including selling their car to gather enough funds for an initial property deposit. They emphasize the importance of working extra hours, such as weekends and cash jobs, to achieve financial goals.

Commitment to Work Over Social Life

The speaker reflects on prioritizing work over social activities, noting friends going on vacations while they focused on earning money for property investment. This self-discipline was crucial in reaching their current success.

Early Influences and Aspirations

During their apprenticeship, the speaker observed older builders involved in property development, which inspired them to pursue a similar path. They recognized early on that entering the property market was essential for achieving their aspirations.

Strategic Financial Decisions

The speaker highlights the importance of making strategic financial decisions rather than indulging in unnecessary expenses. They mention buying a practical vehicle (a Ford Transit) instead of luxury items to reinvest savings into their business.

Common Pitfalls Among Tradespeople

A discussion arises about tradespeople who attempt to minimize taxes at the expense of borrowing capacity. The speaker notes that many struggle with financing due to poor financial strategies and emphasizes the need for better financial advice.

Importance of Professional Guidance

The speaker shares insights gained from connecting with mortgage brokers and accountants throughout their journey. They stress that having knowledgeable professionals can significantly impact one's ability to grow a property portfolio effectively.

Learning from Others' Experiences

Emphasizing community learning, the speaker encourages engaging with those ahead in their journey. Conversations can reveal valuable lessons about what not to do based on others' mistakes or successes.

Building a Supportive Network

The value of surrounding oneself with like-minded individuals is highlighted as essential for motivation and inspiration. Seeing relatable success stories can encourage personal belief in achieving similar goals within property investment.

Understanding the Importance of Asking Questions in Financial Growth

The Role of Ego in Seeking Advice

Acknowledges that while some may not listen, others will find value in learning from successful individuals, emphasizing the importance of seeking guidance.

Highlights the necessity to set aside ego; many financially stable people believe they don't need further advice, which can hinder growth.

Encourages talking to multiple people for diverse perspectives; finding relatable mentors can lead to valuable insights.

Stresses the significance of asking fundamental questions (who, what, where, why, how) to gain deeper understanding and knowledge from experienced individuals.

Real Estate Success Stories

Shares a personal success story about purchasing a property for $435,000 that appreciated to $600,000 after subdivision.

Discusses rental income potential from the property ($715 per week), showcasing practical financial benefits of real estate investment.

Building Relationships with Mentors and Brokers

Emphasizes the importance of approaching those more successful without fear; sharing personal situations can lead to helpful advice and connections.

Reflects on positive experiences with mentors who provided invaluable advice over casual meetings like coffee chats.

The Impact of Quality Financial Advisors

Discusses challenges faced with mediocre brokers/accountants; average professionals may prevent investors from reaching their full potential.

Suggests that confronting issues with current advisors is crucial for improvement and progress in financial strategies.

Creative Strategies and Portfolio Management

Describes having an open dialogue with a supportive broker who encourages creative ideas rather than stifling them due to perceived impracticality.

Shares insights on restructuring portfolios after realizing new possibilities through effective communication with financial advisors.

Notable Property Purchase Experience

Recounts a significant property purchase experience involving negotiation tactics that led to acquiring land below market value ($1.1 million).

Celebrates securing a deal significantly lower than expected price points due to strategic offers made during negotiations.

Property Investment Journey and Strategies

Emotional Appeal in Property Bidding

The discussion begins with a question about the emotional angle used during property bidding, highlighting how personal stories can influence decisions.

The speaker shares their experience of using an emotional narrative about marriage and family to secure a property, which was true at the time.

Financial Growth and Borrowing Challenges

After purchasing Mount Barker for $1.1 million, its value increased to $1.5 million within a year, but holding it under personal names limited borrowing capacity.

Introduction of mortgage broker Peter Savage who helped strategize their investment journey as they faced challenges with cash flow and borrowing limits.

Property Management and Cash Flow Issues

Discussion on managing multiple properties (three investment properties plus Mount Barker), revealing that cash flow was not positive at that point.

Acknowledgment of mistakes made by holding properties in personal names; this impacted their ability to invest further.

Strategic Shifts: Trust Setup for Better Borrowing Power

Transitioning Mount Barker into a trust reduced debt in personal names, improving borrowing power significantly.

The rental income from Mount Barker ($1,400 per week) made it cash flow positive, allowing them to leverage equity for future investments.

Expanding the Portfolio: New Investments

With newfound equity, they purchased another property in O'Sullivan's Beach for $530K, converting an existing shed into a granny flat to increase rental income.

Plans for subdivision emerged as part of their evolving strategy; they aimed to add two more properties behind the current one.

Property Investment Strategies and Challenges

Overview of Property Renovation Approach

The speaker discusses their property search criteria, focusing on homes over 650 square meters and performing cosmetic renovations themselves.

They typically invest around $30,000 per property to enhance aesthetics, aiming for a rental increase of $100 to $150 per week, which aids in maintaining cash flow neutrality.

Impact of Interest Rate Changes

The conversation shifts to the impact of rising interest rates starting in 2023, coinciding with their purchase of a property in Mt Barker.

Acknowledging potential negative cash flow from properties without renovations prompts a strategic reassessment to identify undervalued properties that can be improved.

Strategic Decision-Making in Property Investment

The couple emphasizes calculated decision-making to avoid overspending and ensure financial stability while transforming less desirable properties into attractive investments.

Balancing full-time jobs with renovation work requires significant time management; they utilize weekends and evenings for project completion while coordinating tradespeople effectively.

Sacrifices Made for Success

The speaker highlights the sacrifices made during this journey, including personal relationships and work-life balance challenges.

Despite hardships, the satisfaction derived from completed projects reinforces their commitment to hard work as a pathway to success.

Future Property Investments and Strategies

Discussion transitions towards future investments amid potential negative cash flow scenarios; strategies are needed for sustainable growth moving forward.

Mention of available resources such as books on investing fundamentals offered free to members indicates an emphasis on education within the investment community.

Recent Purchase Insights

The portfolio's current status is discussed; although previously neutral, there are concerns about entering negative cash flow territory due to unexpected expenses.

A recent purchase in Geelong is highlighted as a corner block property that covers its mortgage despite being located in a less favorable area.

Investment Journey and Strategies

First Property Experience

The speaker discusses their first property investment outside of South Australia, highlighting it as a significant new experience. They express excitement about exploring potential development sites and the allure of finding undervalued properties.

Financial Considerations

The rent for the property is estimated between $400 to $450 per week, with financing involving debt and equity from their existing portfolio. The speaker acknowledges that while they may not be cash flow positive initially, their business growth has contributed to funding these investments.

Investment Philosophy

The speaker shares their belief in investing directly into property rather than stocks or savings accounts. They describe a strategic approach where profits are reinvested into real estate, emphasizing the importance of making informed decisions based on market trends.

Market Research and Decision-Making

When asked about choosing Geelong as an investment location, the speaker notes the buzz around the area and emphasizes following market hotspots. They recount experiences calling agents to gather insights on Geelong's market dynamics.

Renovation Strategy

The speaker mentions that they did not renovate the Geelong property upon purchase but plan to consider renovations in future years. They also discuss acquiring another property simultaneously in Chrissie's Downs, which required extensive renovation efforts.

Development Plans

After purchasing a renovator project for $650k, they are currently working through council approvals for developing two additional dwellings on that site. This reflects their strategy of expanding their portfolio through development rather than merely acquiring more properties.

Diversification Concerns

Addressing concerns about lack of diversification within their portfolio concentrated in Adelaide, the speaker expresses confidence due to ongoing developments planned for existing properties. They mention having exit strategies if needed but prefer focusing on current assets' potential.

Future Goals

The discussion concludes with plans to submit development proposals for Chrissie's Downs while considering options like refinancing or selling properties to invest in commercial assets—aligning with long-term investment goals.

Strategy for Real Estate Investment

Overview of Investment Strategy

The speaker describes their strategy as finding undervalued properties that can be developed without incurring high holding costs. They emphasize the importance of identifying homes that may appear run-down but are inexpensive to renovate.

The speaker highlights their advantage in having the right contacts and knowledge to transform these "ugly ducklings" into valuable assets, indicating a focus on opportunities overlooked by others.

Asset Management and Future Goals

The discussion shifts to asset management, where the speaker mentions having a $10 million asset base with options for future growth, including potential subdivision opportunities. They express a long-term vision of transferring investments into commercial assets.

The conversation touches on phases of investment: acquisition, consolidation (development), and cash flow generation. The speaker indicates they are currently consolidating rather than acquiring new properties.

Thoughts on Retirement and Work Enjoyment

When asked about retirement goals, the speaker reflects on their youth and success, suggesting that they do not feel the need for an exit strategy at this stage in life. They enjoy their work too much to consider stopping.

Emphasizing enjoyment over traditional retirement plans, the speaker aims to make property development their everyday job while working towards self-sustaining business operations.

Long-Term Vision and Lifestyle Choices

The speaker expresses a desire to engage more deeply in property deals and joint ventures with investors, highlighting the value found in collaborative projects.

Reflecting on age-related perspectives, they note that at 28 years old with significant portfolio success, thoughts about retirement seem distant. Their focus remains on continuous growth rather than planning an exit.

Personal Insights and Experiences

Acknowledging different life stages affecting strategies, the conversation notes how family considerations might shift priorities for some investors compared to those who are younger or single.

The dialogue includes personal anecdotes about health experiences related to physical activity and resilience within relationships, illustrating a balance between professional ambitions and personal lives.

Understanding Financial Buffers in Business and Property Investment

The Importance of Buffers in Business

Discussion on the significance of having financial buffers for businesses, especially for tradespeople starting or refining their business strategies.

Emphasis on understanding revenue versus profits to ensure a business remains sustainable and does not deplete its resources.

Mention of frameworks for property investing that integrate business considerations, highlighting the necessity of cash reserves to mitigate stress from unexpected expenses.

Managing Cash Reserves

Explanation of setting aside funds within a business account for the financial year to assess performance and make informed decisions later.

Acknowledgment that unforeseen bills can arise, necessitating caution and preparedness with cash reserves both in personal finances and business operations.

Risk Mitigation Strategies

Insight into purchasing neutral properties as a risk management strategy, avoiding high-stress investments like negatively geared properties susceptible to interest rate fluctuations.

Discussion about balancing between potential negative gearing and maintaining a successful business that generates profit to offset risks.

Development Decisions in Property Investment

Current considerations regarding whether to sell developed properties or retain them for long-term cash flow benefits after development completion.

Highlighting tax advantages such as GST waivers when holding onto newly built assets for five years, along with depreciation benefits.

Common Oversights by Investors

Inquiry into common issues investors overlook during property inspections, particularly concerning dampness near showers which is often ignored.

Insights into frequent problems caused by unreliable builders and the importance of recognizing these signs before committing financially.

Understanding Building Contracts

Stress on the need for clear contracts outlining expectations between buyers and builders to avoid misunderstandings during construction projects.

Advice on comprehending different trade specifications to ensure quality builds, noting that many spec home builders may only meet minimum standards.

Insights on Property Investment and Buyer Agents

The Competitive Landscape of Builders

Discussion highlights the competitive nature among builders in Adelaide, where clients often choose between a few top builders based on price and quality.

Emphasizes the challenges faced by builders when covering up substandard work, leading to feelings of guilt for not meeting standards.

Industry Realities and Buyer Agent Concerns

Acknowledges that no industry is perfect, with a specific mention of the buyer agent industry being particularly problematic due to unqualified individuals entering the field.

Introduces a list of 17 questions designed to help potential clients identify trustworthy buyer agents amidst many unreliable ones.

Understanding Market Opportunities

Expresses frustration over feeling left behind in property investment while others seem to profit effortlessly from real estate transactions.

Discusses how some investors succeed while others struggle due to differences in knowledge and strategy regarding market opportunities.

The Importance of Knowledge in Property Investment

Highlights that successful investors often have insights into market trends before they become apparent, allowing them to make informed decisions.

Introduces the "Level Up Property Course," aimed at providing a structured approach for buying properties effectively based on extensive experience.

Commitment to Education and Mentorship

Stresses that making uninformed decisions about property purchases equates to gambling with one's future; encourages seeking professional guidance.

Promises comprehensive support through mentoring as part of their course, ensuring participants are held accountable for achieving their investment goals.

Evaluating Property Locations Strategically

Reflecting on past experiences, emphasizes the need for thorough assessment before purchasing properties rather than acting impulsively based solely on price.

Engages in a discussion about identifying promising locations for investment, stressing the importance of understanding market fundamentals beyond just affordability.

Property Investing Insights

The Australian Dream and Property Trends

The speaker emphasizes the importance of large land and desirable locations in property investing, highlighting Moorford Vale and Christie's as prime areas in South Adelaide.

Notable price increases in Moorford Vale are discussed, with properties rising from $400,000 to $850,000, indicating a strong market demand.

A concerning trend is noted where development sites are being sold for inflated prices; an example includes a block of land in Chrissie's Downs selling for $1 million.

Exploring Other Markets

The speaker mentions Melbourne as having potential for investment opportunities despite its challenges.

Tasmania is highlighted as an attractive option due to its favorable price point and yield potential compared to Victoria's lower yields (3.5% - 4%).

Renovation Challenges

Discussion on renovations reveals that managing them remotely can be complex; the speaker reflects on past experiences with renovations costing more than initially estimated.

Engaging property managers for renovation insights indicates logistical difficulties when not physically present at the site.

Investment Strategy Insights

The sheer volume of properties reviewed by the speaker underscores the effort required to find viable investments amidst many undesirable options.

Acquiring unique properties like those with granny flats is rare; competition drives prices up significantly when they do become available.

Passion vs. Professional Help

The speaker contrasts their passion for property investment with others who may not share the same enthusiasm, suggesting that hiring a buyer's agent could be beneficial for less passionate investors.

Acknowledgment of personal enjoyment in property work highlights how passion can lead to success in this field, while others may struggle without it.

Recognizing Opportunities

The ability to see potential where others see problems is emphasized; examples include recognizing value in distressed properties that deter average buyers.

Personal anecdotes illustrate differing approaches to renovations—while some thrive on hands-on work, others prefer outsourcing tasks due to dislike or lack of skill.

Real Estate Insights and Strategies

Data-Driven Approach to Real Estate

The speaker emphasizes a data-centric approach to real estate investment, suggesting that their success stems from analyzing numbers rather than engaging in physical labor like construction or renovations.

Acknowledgment of the unique skill set that allows individuals to see opportunities others might miss, highlighting the importance of leveraging personal strengths in investment strategies.

Property Valuation and Future Potential

Discussion on current property holdings, with a valuation of $4.3 million for seven properties, indicating potential growth as more acquisitions are planned.

Mention of future developments that could significantly increase property value, such as adding extra dwellings worth up to $700,000 each.

Diversification vs. Specialization

The conversation touches on diversification in investments; however, it suggests that due to specific skills, some investors may not need to diversify extensively.

The speaker advises against diversifying into less familiar markets (e.g., Hobart), encouraging continued focus on areas where they have proven success.

Development Strategy and Execution

An example is given about acquiring a 950 square meter block for development at $1.2 million with an expected profit of $850K upon completion.

Emphasis on the importance of timely execution in development projects—getting plans approved quickly and starting construction without delay.

Common Pitfalls in Real Estate Development

Warning against "shiny object syndrome," where new investors become distracted by features that do not contribute to profitability or feasibility.

Advice for new developers: build an asset base first before taking on large development projects to avoid financial strain from holding too much land without sufficient cash flow.

Personal Reflections and Lessons Learned

Recognition of the speaker's substantial portfolio valued at around seven million dollars before diving deeper into development projects.

Acknowledgment of the challenges faced throughout their journey, emphasizing resilience despite stressful moments encountered along the way.

Mindset and Growth in Property Investment

The Importance of Mindset

A strong mindset is crucial for overcoming challenges in property investment; self-motivation is key as no one else will do the work for you.

Once you start to see success, it can create a snowball effect, driving further motivation and achievement.

Specialization vs. Generalization

You don't need to be an expert in every aspect of property; focusing on your strengths (e.g., specific locations or renovation skills) can lead to success.

It's beneficial to stay within your area of expertise rather than trying to master everything at once.

Business Promotion and Networking

Discussion about promoting businesses; Thomas shares how people can connect with his company, Modtex, which specializes in modern textures.

Emphasis on social media presence for business visibility and engagement with potential clients.

Strategic Property Management

Discussing strategies for personal property management, including renovations aimed at maximizing tax benefits.

Highlighting the importance of proper advice and planning to avoid unnecessary costs like stamp duty when selling properties.

Learning from Experience

Reflecting on past decisions that led to financial losses due to lack of guidance; emphasizes the need for informed decision-making.

Encouragement to seek out knowledgeable brokers or mentors who can provide valuable insights into property investments.

Conclusion: Taking Action

The conversation concludes with a focus on taking proactive steps towards investment opportunities rather than being deterred by setbacks.