How Suvidh Arora Accelerated Business Volume by 120% in 2 Years

After starting his company in 2019, business volumes have skyrocketed by 120% year-over-year for the past two financial years. In this episode he explains more about his business including how it works, who he helps, and how. In addition, he shares his wise advice on procrastination and planning ahead, and reveals exactly the legacy he one day plans to leave for future generations of his family.

Timestamps:
00:31 | Be the Person You Always Needed
03:16 | The Life 40 Plan
08:22 | Do Your Homework and Don’t Hold Back
12:01 | Don’t Give Me Your What— Give Me Your Why
16:04 | Strategise and Keep It in Your Mind
19:00 | Keeping it Simple
22:49 | Murphy’s Law
25:28 | A Humble King

Resources and Links:

Transcript:
Suvidh Arora:

[00:01:11] I basically told my wife, 'There's this estate where there's some blocks of land coming up, and they're releasing them tomorrow, and it's our daughter's birthday tomorrow. So doesn't matter what happens. Let's go there. And let's put a deposit. And buy a block of land.' And she's like, 'Yeah, I like the idea. Let's do that.'

**INTRO MUSIC**

Tyrone Shum:

This is Property Investory where we talk to successful property investors to find out more about their stories, mindset and strategies.

I’m Tyrone Shum and in this episode, we’re back with Suvidh Arora, founder of Cinch and proud family man. He delves into why you should never wait around for the ‘perfect’ time, how his tendency to plan saved him early on in his property journey, and the one surprising question he doesn’t ask his clients, setting himself apart from the rest.

**END INTRO MUSIC**

**START BACKGROUND MUSIC**

Be the Person You Always Needed

Tyrone Shum:

After buying his first block of land, in the cheekiest way possible, Arora’s property journey stalled. From 2013 to 2017 he and his wife didn’t build anything at all apart from their own home, and looking back, he now realises why.

Suvidh Arora:

[00:00:31] I think that's an opportunity lost, because I didn't have someone guiding me on what could be done. And that's where I think I see myself today. Because I didn't have anyone telling me what needs to be done, I try to be that person for a lot of other people.

[00:00:48] Because if I had known things, I would be somewhere else altogether. But in 2017, after seeing waves of property growth, and losing out every time because of the problem of we've got a deposit, but it's not enough. We bit the bullet in 2017, when a day before my daughter's birthday, I basically told my wife, 'There's this estate where there's some blocks of land coming up, and they're releasing them tomorrow, and it's our daughter's birthday tomorrow. So doesn't matter what happens. Let's go there. And let's put a deposit. And buy a block of land.' And she's like, 'Yeah, I like the idea. Let's do that.'

[00:01:29] I still remember my mum was with us here in Australia. At the time she was visiting us and just walking up to her and saying, 'Can you take care of the kids in the morning? Because tomorrow morning, we're going to buy a block of land.' And she had this surprised look on her face. 'He's saying we're going to buy a block of land like he's going to buy tomatoes from proposed.'

Tyrone Shum:

[00:01:51] Just pick one off the shelf. That's nice and easy.

Suvidh Arora:

[00:01:55] We went to this estate, and we reach there at seven in the morning, the office was supposed to open at 10. There were long queues, as there used to be at the time. We finally got inside, we were able to put a deposit on a block of land. And that opened up a whole new world of opportunities.

[00:02:15] Because the next day, we went to another estate and put a deposit on a second block. And then three days later, we went to a third estate, and put a deposit on another block using a credit card. So we maxed out our credit card. We didn't have much money left, we actually borrowed money to put deposits.

[00:02:34] And my wife asked me, 'What's the plan? We're putting deposits on all these blocks of land— what are we going to do?' I said, 'Look, if we keep waiting, it will never happen. Because we'll keep waiting to increase our income, to increase our deposit. And the market is always going to keep growing and growing away from us. So until and unless we take the plunge, we will not work hard enough to work towards achieving it. So let's put the deposit in, let's make sure that we're putting deposit where all those lands are titling at least six months apart. And then we've got a year and a half or two years to work on a strategy to make it happen by the time they actually come to title.'

The Life 40 Plan

[00:03:16] So that's where we started working on a plan which we call our life 40 plan as well, where we decided that day that by the time we are 40 we want to have a portfolio. We were 25 at the time, by the way. So we want to have a portfolio, we want to have a developed business. And we want to be set and be in a position where if one of us wanted to not work completely, we could do that. We could take that call.

[00:03:45] So we did that, and a year and a half later, not only had we settled those lands with a structured approach to what we were doing, we were also able to simultaneously as soon as the lands settled, start constructing on them so that we were not wasting any time and six months later rent all of them out.

Tyrone Shum:

His thorough planning paid off and they registered the titles six months apart from each other, giving the family breathing space to get more money in.

Suvidh Arora:

[00:04:20] During that time, while waiting for that 18 month period for the lands to title, we also managed to pick up another property on the market, which was an already built house in Queensland. And we still count as our retirement home once everything is done and dusted we move to Queensland.

[00:04:39] So the first one we bought was on our daughter's birthday, as I said, so it's our dedication to that's her property for life. The second one was bought for my elder daughter. So that's hers for life. The third one was bought for my niece, so that's hers for life. So that's why we've always thought of it like that.

[00:04:59] And then two years down the line, my wife always wanted to buy another property in the suburb we live in as an investment as well. So we were able to achieve that too. And then recently, we've acquired three more properties in North Melbourne, which are not long term investments, they are more for renovation, extension and flipping, just to get that cash flow moving all the time. So that's what's happened in the last... just under five years since I actually got serious about creating a property portfolio. Which now, if I look back at it, the overall portfolio stands at around $7 million.

Tyrone Shum:

While his property journey has been mostly smooth sailing, one day a wave came along in the form of an insistent bank assessor.

Suvidh Arora:

[00:06:13] We did plan very well in advance for each and everything. But there was one where because of a bank assessor, we almost lost one of the blocks of land, and that was the one which was actually the first one we put a deposit on.

[00:06:26] It was purely because the bank assessor could not understand how self employed incomes and business structures work. So they insisted that I had a business car loan, which they insisted has to be paid off before they would approve the loan. And they only decided— even though the application had been in the system for about eight weeks— they only decided to bring this up one day before the land settlement.

[00:06:52] And suddenly turning around and saying, 'Well, you've got this $40,000 loan which we need you to pay off before we approve the loan.' So that was a scary moment. But because we had structured ourselves in a way where we always had some buffer lying around, we were able to use that cash temporarily to pay off that car loan just to appease the banker assessor. Get rid of that and say, 'Look, this is done now. Can you please proceed with this?' That was probably the one hiccup that we did have. But apart from that, everything's— touch wood— gone to plan.

[00:08:16] Buffers definitely are a big part of any strategy that I talk to clients about.

Do Your Homework and Don’t Hold Back

Tyrone Shum:

[00:08:22] On the flip side, I know you've shared all the successes that you've had during this property journey. But what was one of the biggest aha moment that you think that you had along, or even if you had multiple aha moments?

Suvidh Arora:

[00:08:38] If I'd known what I know now, back in 2013, I could have been on a completely different plane. Just in terms of how bank lending works, and how property portfolios can be made, and what strategies to use, whether you use interest only loans or not. All those things. I think, if I had known better, I would have done a lot better.

[00:09:52] I mentioned that small anecdote about my mother looking at me with that look. But I still remember after we came back home, she was actually a very big encouragement and motivating factor in saying, 'You are on the right path, your heart's in the right place. As long as you do your homework and plan it right, you will be successful. So go for it. If you're dreaming of something, don't hold yourself back.' And she's always encouraged me to do that.

[00:10:26] And that obviously has always helped with achieving what we can. And she has been a really big help with supporting us through these times as well. So just being there and helping us take care of the kids. And just being that constant support and guide and motivator has helped us a lot as well.

Tyrone Shum:

[00:10:49] That's amazing. And is your mum now living here in Australia, or she gone back to India, back and forth?

Suvidh Arora:

[00:10:53] She was in India for the last couple of years. But she's recently come back to Australia about six weeks ago. And the kids are loving it. It gives my wife and me a bit more flexibility around what we can do and achieve as well. And again, she's always been such a big pillar. And she's, again, still doing the same. You go and do what you need to and I'll take care of the rest. So best mother ever.

Don’t Give Me Your What— Give Me Your Why

Tyrone Shum:

As he caters each client’s strategy to their individual goals and plans, there isn’t one singular overarching strategy Arora uses.

Suvidh Arora:

[00:12:01] One of the first questions I always ask my clients when they get introduced to me is, 'Don't tell me about what this transaction is, I don't care about that. Because this is the easy part, this can be done. Tell me what your five year strategy is, tell me where you want to be five or 10 years down the line on the property front so that I can plan in the now for your future.'

[00:12:23] Because a lot of the times you can get too fixated on interest rates, and banks and all of that in the now and lose sight of your ultimate aim. And my job, as I see it, is to have that vision for them, and guide them on that whole journey rather than be short sighted and do what everyone else is doing.

[00:12:47] And that's where I'm able to add value to our clients. I've continued being an educator. So the reason I'm always on the phone is because if a client calls, I actually don't put the phone down 'til I've answered not only all their questions, but all the questions that I think they don't even know to ask.

Tyrone Shum:

[00:13:05] Oh, that's true. There are people you know, it's what you don't know is what you don't know.

Suvidh Arora:

[00:13:12] I've always followed the philosophy of Henry Ford. He once said, 'If I'd listened to what my clients or my customers want, we would still be riding faster horse carts.' So sometimes people don't even know what they actually want to know. So that's where, being an expert in the field, you come in and tell them what needs to be known and what are the different pros and cons of various strategies. And then that's where I see myself having the most amount of value.

[00:13:40] And, again, having been an educator helps because I not only do that on a day to day basis of phone calls, but we also have our own Facebook and WhatsApp and LinkedIn groups where we've got thousands of clients and future potential people who we just share knowledge with.

[00:13:58] There's no agenda, there's no talk of selling anything. It's purely educational. So every day we spread some information, spread some knowledge. There are experts from different fields, there are buyers agents, conveyancers, accountants, financial planners, all in our groups, who will just share what they know. And people are very open at asking questions then. They know that they'll get genuine advice and answers on whatever their queries are. And not from someone who's just trying to serve their own purpose. That's obviously helped in building that trust with clients.

[00:14:38] And then when we do those strategy sessions, I'm just able to talk to them about what their plans are and strategise on that. Whether it's interest only loans work for you, or principal and interest, or whether it's fixed rates versus variable rates, or what the DTI ratios for you are currently and what they are projected to be in the future. So all of those calculations come into play. What kind of property growth you want, etc, etc. And then we bring it all together. And that amalgamation is what helps decide what we do for them in the now so that we can plan for the future.

**ADVERTISEMENT**

Tyrone Shum:

Coming up after the break, we delve into strategies, and why following whatever your friend does isn’t always the best plan…

Suvidh Arora:

[00:16:56] If you have that scattergun approach, then you're more likely to fail than not.

Tyrone Shum:

The very specific reasons as to why he purchases each property…

Suvidh Arora:

[00:19:08] There's nothing more than that. I don't want to earn $10 million or $20 million, or anything like that, I don't have any of that in mind.

Tyrone Shum:

He reiterates a piece of advice he lives by that has always served him well.

Suvidh Arora:

[00:21:13] I try to surround myself with good people who have the right things at heart, and who will guide me in the right way.

Tyrone Shum:

And that’s up next. I’m Tyrone Shum and you’re listening to Property Investory.

**END ADVERTISEMENT**

Strategise and Keep It in Your Mind

Tyrone Shum:

A fan of the traditional buy and hold strategy, Arora has found what works for him and sticks with it.

Suvidh Arora:

[00:16:04] My personal strategy with my property portfolio has been buy good properties and hold them for as long as you can. And that's done and dusted, that's already in the bag, it's there. Now I've moved to phase two, which is the secondary strategy, which is now I just want to do things for cash flow. The growth part is already done. And the cash flow is going to come from your development projects, or your renovations and adding value and structural additions, and then flipping properties and all that. So that's currently what I'm doing.

[00:16:36] And again that's what people need to try and keep in mind. You have a strategy, you have a plan in mind, and then try and execute it rather than just blindly follow what my friend who I met at a barbecue is doing, and just just saying, 'Okay, he's making money like that, maybe I can as well.'

[00:16:56] If you have that scattergun approach, then you're more likely to fail than not. So always have that plan in place, and discuss it openly. And if you're not open to discuss what your plan is, no one's going to share their knowledge with you. That's why I'm very open about talking about what I'm able to achieve. I talk about this with each and every one of my clients, I share my experiences. And I say, 'Look, I will never advise you something that I won't do for myself. So, you tell me what you want to achieve. And then if I can, I'll help you with devising that strategy. And if I can't, I'll point you to someone who can.' So that's always on the table as well.

Tyrone Shum:

When it comes to recommendations, he doesn’t make his own, but he does discuss options.

Suvidh Arora:

[00:18:09] We do so many transactions for clients on the lending side of things, so I always have visibility about what areas are growing quicker than others, what areas the valuations are stacking up, what the rents are looking like in different areas. So you always have that discussion.

[00:18:23] And then if they want someone specific in that particular field, we've got certain people who we know work with our clients very well, because, again, they're looking after the client's best interest rather than their own. So we basically just have an open conversation and bring them into the chat. And just ask the client to talk to them and pick their brains on that. And we take it from there.

Keeping it Simple

Tyrone Shum:

His children and his family’s future is at the front of his mind every step of the way along his property journey.

Suvidh Arora:

[00:19:00] I'm building my portfolio to leave generation wealth for my kids, to be honest, and have a lifestyle that I want to have. There's nothing more than that. I don't want to earn $10 million or $20 million, or anything like that, I don't have any of that in mind. I'm a very simple and straightforward person. So for me, it's all about myself and my family and my kids, and what I can do for them.

[00:19:21] And even on the work front, I always get asked what I want my legacy to be. And, again, it's very family oriented. For me, I want to always do the right thing by people. Give them good advice, be honest with them, and just tell them things as they are. So that after I'm gone, if my daughters are walking down the street and one of my clients sees them, they actually come up to them and say, 'Your father made a difference to our life and he was good at what he did and we're proud to be associated with him.' So, that's the legacy I want to leave for my kids, for them to be proud of what I was able to do for them and for everyone else. And that's what motivates me today.

Tyrone Shum:

Arora’s mentors are the people closest to him, including his maternal uncle.

Suvidh Arora:

[00:20:28] He and my mum are my silent mentors, right? They don't know they are, but they are. My wife is someone I always discuss each and everything with, we constantly discuss ideas, etc. And especially because obviously, she deals with a lot of corporates as well, so she has a different perspective into how we should do things.

[00:20:50] And then I also got a business mentor, Teresa, who I actually am meeting in a few minutes from now. And she's been a constant support, and she guides me a lot in what we should do and how we should look at expanding the business of bringing more good people into the business, who we should be associating with, those kinds of things. See, I try to surround myself with good people who have the right things at heart, and who will guide me in the right way.

Tyrone Shum:

He may not be a big reader, but that’s just another of the reasons he and his wife make an unbeatable team.

Suvidh Arora:

[00:21:54] My wife loves reading. So I probably would defer this question to her. I honestly, absolutely, genuinely, I do not read anything. I don't follow a lot of stuff. For me, everything is common sense. So if something makes sense, if the numbers stack up, and it looks right, it feels right, then it should be done. Otherwise, not. Because if you don't get confidence from what you see, then no amount of knowledge from books and strategies, and all of that can help you.

[00:22:25] End of the day, you've got a gut feeling and it's there for a reason. You've got a brain and you've got common sense, it's there for a reason. So that's something that I always apply. And then I always think about what I would do in a certain scenario and what I wouldn't, and that helps me decide what strategy should be and what it shouldn't be.

Murphy’s Law

Tyrone Shum:

[00:22:49] You've shared some really great quotes, and also some really good lessons and advice. But what do you think has been the best advice you've received from people you've met in your property journey?

Suvidh Arora:

[00:23:02] The best advice has been— it was actually advised that something we mentioned earlier, as well— always, always have a plan B and always have a buffer in place. Because it's Murphy's Law. Anything that can go wrong will go wrong.

Tyrone Shum:

[00:23:18] Happens every time.

Suvidh Arora:

[00:23:21] No one can plan for things that go wrong. But you can always plan for what you might do if something goes wrong. And if you're well prepared, you will get a good result in the end anyway. So you should always focus on having your plans in place, whether it's Plan A, B, or C. And then it's just about implementation. So if things happen the way you want them to, then plan is good. Otherwise, you switch to Plan B, and C. And you don't take too much time doing that. You don't dwell on it too much. You have to be very decisive when it comes to you moving on.

Tyrone Shum:

[00:24:25] If you met yourself, say 10 years ago, what do you think you would have said to him?

Suvidh Arora:

[00:24:30] Take a plunge earlier. Make sure you get in much earlier. And then you associate with people who will give you the right advice. And do that as quickly as possible.

Tyrone Shum:

Looking to the future, he’s most excited about the projects that can add the most value.

Suvidh Arora:

[00:24:58] We've created an investment fund through which we're actually getting a lot of friends and family involved, who will buy into those projects. And then we're going to actually give them a return on that, so that all their money that's just sitting waiting is actually put to good use rather than not earning anything at all.

[00:25:16] And on the work front, I'm just excited by the opportunities that exist out there and what we can continue to achieve for our clients. That's what gets me out of bed every single morning.

A Humble King

Tyrone Shum:

[00:25:28] Well, Suvidh, you've shared so much of your journey and it's been an amazing story. How much of it do you think it's because of hard work, skill and intelligence? And how much of it do you think is because of luck?

Suvidh Arora:

[00:25:43] I don't think I'm very skillful. I don't think I'm the most intelligent person. I have worked really hard. I've had some really, really excellent support from a lot of people. But I do believe you make your own luck. You have to work smart, you have to work hard. And if you have your heart in the right place, and your intentions are clear, and you always have other people's best interest in mind, success will follow.

[00:26:09] So there's no luck about it. It's more about taking care of each and every person around me. And I actually have this model that I will only make sure that I look after my clients, and my clients will look after my business. I don't have to worry about my business at all.

**OUTRO**

Tyrone Shum:

Thank you to Suvidh Arora, our guest on this episode of Property Investory.