3 Proven Investment Hacks to Turbo Charge your Cashflow

We often hear the expression ‘cashflow is king’, but what does it really mean and why is it so important?

If you think of your property investments as the engine, cashflow is the oil that’s going to keep things running smoothly.

So while your ultimate goal may be to earn enough passive income to gain financial freedom, when you’re in the accumulation stage of building your portfolio, your main focus should be to have all your income and cashflow working as hard for you as possible.

Lack of cashflow is one of the main reasons many property investors stop at just one or two investment properties, because it means they:

• Don’t have the right financing across their current property portfolio, or
• Don’t have the right strategy or know how to leverage other people’s money to build a successful portfolio

As every successful property investor will tell you, owning one or two investment properties is simply not going to be enough to achieve your goals of retiring early or living a life of financial freedom. If you at an average income, to achieve the dream of real long-term wealth – you need a strategy to build a portfolio of at least 4+ properties.

Cashflow is one of your tickets to making that dream a reality.

Leverage Leverage Leverage.

The idea here is to use as little as your own cash as possible. Learn how to use your own home as a bank. Before you dip into your savings, leverage off your investment properties first and use the accumulated equity for deposits on your next property.
The more properties you have, the quicker your equity grows. The more equity you have, the more leverage and so on.

Keep an eagle eye on your loans. With the current spate of interest rate rises, smart investors are shopping around for better deals from their lenders.

Increase your personal income – and your borrowing capacity

Successful property investing is not a set and forget process. If you ask yourself exactly how much money you want to earn and in what timeframe, even if you own one or two properties, you may quickly discover that you need to be more proactive in how you reach your goal.

Don’t fall into the trap of thinking you’re limited in how much you can grow your own personal income. One of the most valuable teachings our own CEO Joseph Chou applies to his own life is that limiting your thinking will automatically limit your income.

Start thinking outside the box for creative ways to increase your income.

• Make yourself more valuable to your current employer by taking courses, upskilling, taking on more responsibility, working harder.
• Explore what your skills are worth in the current market and if you’re not getting paid enough, ask for more money.
• Start a side business or work a second job
• Find a job that makes you happy because the happier you are, the harder you’ll want to work.

Increase your rental income – and your borrowing capacity

You may own multiple properties. But are they working as hard as they can to maximise your returns?

You may be able to increase your rental income by:

• Making minor improvements such as repainting or installing new blinds and carpet
• Consider furnishing your property – research what additional rental you can receive and what the demand is like for furnished. $10k furniture (the cost of which can be paid off over 2 years + tax deductions) could add an extra $100/week to rent.
• Car park (Apartments) – Is the car park being used? If not, this might be able to be subleased to another tenant in the building for additional rent

Need more turbo boosting tips?

Register for our Secrets to Turbo Charging Your Cashflow webinar, where you’ll discover more strategies such as:
• How you can buy more property, income & leverage
• 3 ways investors make money (and how you can maximise all 3)
• The proven 4 steps to 4 properties in 6 years
• Should you buy, sell or hold?

Your webinar host, Grant Ryan, is widely regarded as one of Australia’s top residential market experts. He was the creator of Ironfish’s signature Portfolio Approach strategy more than a decade ago that assists investors to put strategies in place that maximises both cashflow and capital growth.