CHAPTER 1
MY JOURNEY TO FINANCIAL FREEDOM

My journey towards financial freedom started a lot earlier than others. Growing up with immigrant parents who always stressed about money gives you a driving force for life. Money was a very taboo topic, a distinctive feature in Indian culture. I hope for this to adapt over time, because the sharing of ideas and knowledge is a leading factor in why I have excelled in scaling up my personal portfolio.

I have realised over time the significance of being in the right rooms?-?and how this enables being part of the right conversations. I know that many people haven't been as fortunate as me, and haven't been in these conversations so I'm hoping that you can learn some of the lessons from my journey, in order to leverage your actions as you make your way towards financial freedom.

LIVING A LIFE OF CHOICE IS THE ULTIMATE GOAL.

BEING BITTEN BY THE PROPERTY BUG

I was excited?-?rather than nervous?-?when I purchased my first property, mainly because I had been a student of the market for years. So, before I do a deep dive into the exact location and numbers of that first purchase, let's take a step or two back. I first started learning about real estate after my brother, Deepak, suggested I attend a seminar that was running at the local RSL club. The conversation went something like this?.

'Ravs, there's a real estate investing seminar this Saturday. Let's check it out!'

'Umm, what's it all about?'

'It's all about learning to invest in ten properties over ten years and then retiring early!'

'Wow! That sounds fantastic?-?count me in!'

Don't quote me word for word; I'm trying to remember the exact conversation 13 years later. In the end, my brother and I were welcomed into a conference room with about 50 other people. We listened to a few people present the concept that you could buy ten properties in ten years and then use the growth on the first five properties to pay off the remaining five, to then retire debt free. The concept sounded too good to be true, but when the numbers popped up on the big screen, I knew it was possible.

The strategy they presented was simple but powerful:

• Year 1: Buy a $350?000 house.
• Year 2: Buy another $350?000 house.
• Years 3 to 10: Buy a $350??000 house every year.
• Year 10: Sell the first five properties purchased in years 1 to 5, which would have doubled in value. (This is based on overall trends that property, on average, doubles in value every seven to ten years.) Once you sell the first five properties, you will have no debt on the remaining five properties, and you can retire.

Let me break this down a little more, keeping the maths simple. The first five properties would now be worth as follows:

• $350?000 (original price) × 5 (number of properties) × 2 (doubled in value) = $3?500?000

The second five properties would be worth the following:

• $350?000 (original price) × 5 (number of properties) = $1?750?000

Again, this is keeping the maths very simple?-?the property bought in year 5 may not have doubled in price by year 10, while the property bought in year 6 would be worth more than its original price by year 10. However, the basic principles still apply. By selling the first five properties for $3?500?000, you could easily pay off the debt on the remaining five, which you would then hold debt free. This concept appealed to me deeply. At the time, it all made sense, particularly because this was before the banking regulations around borrowing capacities and lending ratios were tightened. You might be 22, just starting out in real estate like I was, and thinking, Wow, this is amazing?-?I could retire before 99 per cent of people and never have to work again! That's exactly what was going through my mind back then.

My brother loved the idea as much as me, and we rushed home that afternoon to share our newfound concept with our dad. He was also surprised that the numbers checked out?-?however, he stressed that the concept relied on the properties you bought doubling in value. You would also have to spend a large portion of your monthly salary to hold the portfolio of ten properties, given they would be negative cash flow. Is that really ideal in your 20s?

'We can figure out the details like location and cash flow later', I told my dad. 'Let's focus on getting that first deposit ready now.'

FINDING?-?AND COMING BACK TO?-?MY WHY

While we're stepping back to the very beginnings of my property investment journey, it's important to know 'why' I was so infatuated with the concept of retiring early. No doubt just like you, I love the idea of working when I want to work, and then doing whatever I like with the rest of my time. That freedom was part of it, but my real reason was that I wanted balance. My dad was a hustler, working three jobs while Deeps and I were under the age of four. He wanted to ensure that we had an easier life than he'd had when growing up?-?something he stressed to me when I started investing.

'Make sure you do everything you can to build a bigger foundation for your kids when your time comes', he said.

That is exactly what started this process of defining my purpose and my 'why' for wanting to start investing.

With this purpose in mind, and my goal of getting together that initial deposit, I took up a job in retail the day after my year 12 formal, as a clothing assistant in the city. So, I had saved a sizable deposit by the time I was in university. However, my best friends at the time were planning to go to Europe and they wouldn't stop talking about how amazing it was going to be.

'Ravi, you should come with us! It'll be so much fun?-?you can invest later, let's go!' Imagine hearing that every second day, from your best friends. We worked in the city together, we went out to bars and nightclubs together, and the thought of going to Europe with them seemed too good to pass up. So, one day while on my lunch break, I decided to be spontaneous and I booked a return flight to London. But I knew that if I was going to go, I also wanted to experience new cities, knowing no-one, and really get out of my comfort zone. So, I told the travel agent that I wanted to join a Contiki tour, by myself.

What had I just done? I'd locked in flights to London and a 20-day Contiki tour by myself?-?and, even worse, I hadn't even told my best friends or my parents! My palms are sweaty as I write this because I remember the adrenaline rush I experienced, and how nervous I was. Back then, I wasn't sure if I was more scared to tell my parents or my best friends, but I didn't have to wait long to face the music.

'Hi, Ravs! Where were you? I came by the store, and they told me you went for lunch?'

'Ahh, yeah. I actually booked flights for London.'

'OMG! That's amazing, I can't wait for us to party it up!'

'Yeah, so about that?.'

Difficult conversation #1?-?check!

Later that evening I arrived home and asked Deeps to come to my room ASAP. Thankfully, he was excited for me after I showed him the flight itinerary, but then it was time to tell Dad. That conversation would have been a lot easier if Mum was home, but she was travelling in India at the time visiting family, so I had no insulation from the situation. Dad was always the strict one and so, it was time for difficult conversation #2.

I've got to give credit where it's due and I know it couldn't have been easy for him to take that news in, especially because it was two versus one. Deeps was ready to support me and for every question Dad asked, we had the answers. Now, we did tell Dad a lie by saying that I was going with my friends, but I did rectify this (eventually) by telling him years later that I'd travelled by myself. As I write this, I realise that my kids at some point will likely also read this, so I'm going to add a quick caveat: 'Definitely don't lie to your parents because they are only looking out for you.'

Three months later, I'd had the greatest time on my trip and created amazing memories. I was so glad I went on the trip and experienced what everyone else was raving about, but I now felt like I had moved backwards with my savings and investing plans. I was pretty disheartened, but I returned to my 'why' and purpose, taking up extra shifts and effectively working full-time hours after that. I was studying a Bachelor of Business at the University of Technology Sydney (UTS) full-time and working full-time. I loved it! I had the energy for it, and by working and studying in the city I was always out and about, too. I really enjoyed my early 20s!

CHOCOLATE OR INVESTING?

By the time I was in my final year at uni, I knew the importance of having a strong...