Timestamps:
00:01:13 | The Big Score
00:03:34 | Delegation
00:04:53 | Embracing the Unexpected
00:06:09 | A New Direction
00:07:06 | The House Reimagined
00:09:23 | Airbnb Advice
00:10:48 | Uncovering Long-term Goals
00:12:48 | A Buyer’s Guide
00:14:50 | Developing the Mindset
00:16:51 | Reading Recommendations
00:17:42 | The Importance of Being Resilient
00:19:31 | A Message to Himself
00:20:58 | Luck or Not?

Resources and Links:

[00:21:37] And I feel like a lot of people just give up when they get that that fear. And they sort of pivot back into a nine to five or whatever it is. But yeah, if you sort of just persevere through it, I think feel like, eventually, you sort of come up with a solution or find a way to make it work, because there's not really any other option.

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 Jack Freestone, the founder of Buyers Collective. In this more instructional episode, he shares the highs and lows of his journey, incredible advice on the value of turning your properties into Airbnb’s, as well as highlighting the importance of perseverance, and his thoughts on luck and success!

While many remember the successful moment as the moment when they ‘hit it big’ and rolled in the big bucks, Freestone recognises his as the moment he knew property investment was his calling. He thus paints a picture of his first investment property. 

[00:0:32] My first property development was probably my first aha moment when I walked away, I think was around $120,000, after like, nine months of work in my pocket, and I was like, oh, you know, this beats most nine to five jobs that you can do it. And I had fun doing it and learnt so much. 

[00:00:58] And so I was like, ‘Oh, if I can do two or three of these a year, you know, I'm cheering’. So that was definitely an aha moment.

[00:01:16] Basically, it was the first deal that I did, it was in New Zealand, actually. So it was a block of land. And basically, it was like, on the outskirts of this sort of town, and people were unsure if the council would allow you to subdivide it, because it didn't have the correct zoning. 

[00:01:38] And I made a few more inquiries, and discussed that with a town planner, and the council. I went in and met with them. And they assured me that, you know, I shouldn't be able to push it through. And if I, you know, completed these different aspects that they wanted for the property, they would approve it. So I basically engaged [in] all the correct trades, I purchased the property. And I started the process. 

[00:02:09] And I went out to old dairy farmers in, you know, the farmland in New Zealand and brought these old dairy houses. One I purchased, I think, for 25,000. The other one was like 36,000, wow, got some cheap button moves on a truck to each of the sections. And I basically got them connected and set up all the services. 

[00:02:34] And then I started the renovation process, and renovated the first house first and then sold that and then started the second one. And completed that and on sold that I actually sold them both privately as well. So I have money there on real estate fees.

When it came to the renovation, Freestone was more than happy to delegate his tasks. Not keen on tradeswork, he assumes other vital roles: management and sales. Sharing his management strategy, Freestone reveals a valuable lesson to everyone listening: how to bring up the value of a house.

[00:03:04] I hired trades people. Yeah. Yeah. I'm not that keen to jump on the trades or all that skilled for that matter, either.

[00:03:30] Yeah, so typically, what I would do is create an outdoor space like an Alfresco area, I would usually get the house completely put in new kitchens, new bathrooms, new flooring, and paint the inside and the outside new roof if it if it needed to be done. If the roof didn't need to be done, it would just have a new coat of paint. And then basically just a small minor amount of landscaping and, and that'll be about it. 

[00:04:12] Usually, it would be anywhere between 50 and 100 grand on a renovation. So some of them were quite considerable. I have done lots of renovations that were, you know, 30 grand, I think was [the] smallest one I've probably done.

Unfortunately, a renovation is not like a development—there is no fixed cost. Unexpected issues and costs may crop up. 

[00:04:47] It definitely happened quite often with renovations, sort of like Pandora's box. You don't really know what's going to happen until you start opening up walls. And, you know, there were lots of times where there'll be a maybe a small leak in the roof and that had been, you know, leaking in the wall. 

[00:05:04] And then you know, all the studs and framing were rotten within the wall and that [was] replaced or on the floor and different things like that. So, yeah, I definitely encountered quite a few things like that.

Despite this uncertainty, Freestone keeps his passion for renovations. 

[00:05:29] I really like doing renovations, really enjoy it, love doing developments, just, it's [a] really rewarding sort of project to do, because at the end of it, you can be proud of what you've accomplished. And you know, what you've been able to complete and you know, someone else is going to enjoy it.

[00:05:49] But I'd like to, you know, continue to lean more towards the higher end of of houses, new builds, luxury sort of homes is a direction that I'd like to continue working towards,

Of course, one cannot remain stagnant in their career. Having hit his rhythm with renovations and finding a place within the property industry, Freestone shares his future career plans and goals. 

[00:06:11]  The last house I did, it was down towards Byron Bay. And that was more of a luxury renovation, and it was more of that boho whites and woods. And really, that's sort of like a trend at the moment. But yeah, I would love to continue doing that up here as well. 

[00:06:29] My main focus at the moment is the buyer's agency that I've been running. And that's, you know, keeping me going full time. Every single day. I'm working on that business. We're super busy helping homebuyers, investors and developers. But yeah, when I get more free time, or as the business gets bigger and able to employ more people, I will definitely continue on the development side a bit more. 

With his upcoming plans of building a portfolio and shifting into the high-end luxury market, Freestone reminisces on past renovation projects. 

[00:07:30] It was back in 2021. I purchased that one. And it was an old brick 1980s single level home, four bedrooms, two bathrooms, double garage, just on just over 600 square meters. And I decided to fully get the inside of the house and put it in the new bathrooms, new kitchen, huge Alfresco area with, you know, pizza oven and all [the] ceiling and yeah, made it really nice, rented the outside and, and painted it. 

[00:08:08] The property did have a Heritage overlay on it, even though there weren't really any heritage houses in the street. So with council, we had one council member come out and tell us, you know what color we could paint the house and so we painted the house, that color wasn't exactly what we wanted to the color that we wanted to paint the house, but it wasn't too bad. In the end. 

[00:08:34] They wanted us to actually paint the house more of a green color for me but tucking them around to a really, really light gray almost white at the Yeah, yeah. But yeah, that was a really exciting renovation and I've held on to that property and it's on Airbnb and does really well.

[00:08:56] So why did you choose Airbnb rather than go down the traditional path of renting it out?

[00:09:05] The returns on Airbnb are just a lot better. Obviously, you got the insurance with Airbnb, which covers you up to I think a million dollars for damages or lost property. You know, guess what typically stays for a minimum of two nights and a maximum of five. 

[00:09:24] And cleaners would have cleaners go in after and clean the house. So it's constantly being looked after and maintained. Yeah, it just made sense in that regard. And yeah, the returns are huge compared to the long term market there.

Though many listeners may be hesitant to divert from traditional practices when it comes to property investment, Freestone encourages us to take that leap. He shares some reasons why.

[00:09:52] It's more of a streamline sort of system. It's on Airbnb booking.com. And when bookings come, as in, I sort of notify the cleaner, the cleaners are sort of aware of all the bookings, there's a lockbox on the side of the house. And the code for the lockbox gets sent to the guest before they arrive. And so then they can just get the keys and go in and just put them back when they leave. 

[00:10:18] And then the cleaner goes and collects the keys and cleans the house and maintains the property and then puts them back. So I don't really have to be there at all. Right? So that's really convenient for me.

Disclosing further detail, Freestone highlights what information he gives cleaners to be able to prep the property.

[00:10:47] I met them a few times and took them to the property originally, before that we employed them [to] discuss, you know, sort of what I wanted done and how it needed to be done. 

[00:10:58] And, you know, if they could complete, you know, all the bookings that we have, because we're quite busy, and they were able to do it, they were fine with, you know, changing the sheets, we just ended up buying, you know, several sets, so it'd be a lot easier for the cleaners so they wouldn't have to rush throughout the process. And yeah, it's been really smooth sailing.

Continuing to impart his wisdom to listeners, Freestone shares the importance of setting new goals. Having purchased his property in Byron Bay and making the bold move to the Gold Coast, he outlines the next steps in his success plan.

[00:11:58] So personally, I would just like to accumulate maybe another five to 10 properties along the Gold Coast, and mainly in Brisbane City. Basically hold them up until, you know, retirement sort of age. And in the meantime, throughout that process, I would still like to be continuing doing the development side of things. 

[00:12:27] But yeah, like, my main focus in property right now is buying it for other people.

Coming up after the break, Freestone shares advice on how to get into property investment…

[00:13:41] If people do want to buy, you know, small units and apartments and things like that, we usually try to direct them around to, you know, small five packs to 10-pack sort of scenarios

He discusses the incredible value a portfolio brings to the table…

[00:15:47] For me, personally, growing a portfolio is more for freedom. Yeah, I think that's what a lot of people's goal is not necessarily to get rich, or, you know, become wealthy is more about being able to do what you want with your time.

Debunks the myth of luck in the success journey.

[00:23:55] I think you sort of create your own luck, I think I've created it just from you know, getting out there and having a go and, you know, learning from other people that you know, more advanced than myself and that have more experience. 

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

Giving listeners even more advice, Freestone outlines the criteria he looks for when buying, as well as the strategy adapted for clients. 

[00:12:55] Typically, I base a lot of our purchases on location dependent and data driven information, but facing different locations of the demand, the supply, just simple economics, things like that. Here in Brisbane, there's really low stock levels at the moment. And there's still quite a lot of buyer demand. 

[00:13:19] I always, you know, sort of go back to my roots, where I think that purchasing when it comes to property or an investment depends on a client's strategy. But for me, buying a house and just land is the best sort of investment that you can buy. I try to steer most people away from apartments in, you know, high rises and things like that. 

[00:13:41] If people do want to buy, you know, small units and apartments and things like that, we usually try to direct them around to, you know, small five packs to 10-pack sort of scenarios, because you're only showing that the land value with a small number of people compared to big high rises. Yeah, yeah. But typically, in those little locations, people are buying for convenience, and lifestyle.

To elaborate, Freestone reveals the main advantages buyers consider when choosing units, highlighting that it has more to do with convenience than the lower price point.

[00:14:17] Typically, it's lifestyle and convenience for homebuyers. When they want to buy in there, you want to be, you know, close to all the shops, the cafes, the restaurants and, you know, not having to commute so far for work and things like that. 

[00:14:31] So typically, before the rate rises, we saw a lot of buyers, you know, in the city wanting to purchase houses. But since interest rate rises, those people's borrowing capacities diminished, but they're not actually wanting to compromise on the locations. And so instead they'll start buying apartments or townhouses.

Moving away from the more traditional advice, Freestone answers a more pivotal question: Why do this at all? Why invest in a strong portfolio? 

[00:15:47] For me, personally, growing a portfolio is more for freedom. Yeah, I think that's what a lot of people's goal is not necessarily to get rich, or, you know, become wealthy is more about being able to do what you want with your time. That's what I'm more about, I'd love to, you know, be able to, you know, do whatever I want, whenever I want with my time, whether that be traveling or spending it with family and friends. I think that's the main thing. 

[00:16:13] And I think property is a great tool to be able to leverage into a position quite quickly, compared to, you know, different avenues. I understand it quite well, you can, it's tangible, you can see it, you can feel it. You know, for me, I think it's the best tool to get there.

[00:16:33] It's a very good strong vehicle, once again, to get to your goals, or your dreams and whatnot. And ultimately, you don't have to say you love property as much as you should. It's something that just helps you achieve your dreams and goals just like with any business too. And along your journey, you've actually done a lot of things, which is really amazing. 

[00:16:57] Did you have any resources or mentors that you actually approached previously to gain the skills that you had? Or was it all through experience?

[00:17:06] Yeah, I didn't necessarily have any mentors, or people that sort of guided me that much. I just really watched other people that were doing the things that I wanted to do, whether that be on social media, or you know, checking out their websites and seeing different projects that were being completed or done. 

[00:17:25] And I would just, you know, research about them and you know, their story, and you know, how they got there, how they started out lots of podcasts and lots of different things, reading different books and, and stuff like that is really sort of just self education, I guess.

Continuing to help our listeners, Freestone is more than happy to recommend reading materials that helped shape his journey. 

[00:17:52] Different books, there's always the ‘Rich Dad, Poor Dad’. And that was probably one of the first property sort of books that I ended up reading. I recently read a book, I forget the name of it, but it was about a developer that created the suburb of Springfield lakes. Oh, Brisbane.

[00:18:13] Mohab Combi, I can't pronounce his name. Yeah. Yeah, something like that.

[00:18:16] And that was a really incredible story that that guy did.

[00:18:34] He just didn't stop until he got it done. Yeah, the things he went out and did, and the amount of no’s that he got and roadblocks and, you know, the amount of times that he was about to go bankrupt. And so, you know, pushed through and, and made it happen. So amazing.

[00:18:50] His vision was so big, that, you know, it was something that he was so strong and passionate about, if that drove him to be able to achieve that. Because if he didn't, you know, there wouldn't be a Springfield as we speak today, unfortunately. 

[00:19:02] Yeah, exactly. Yeah. 

[00:19:04] So what did you learn from that book, but in particular, what was the point that you or anything that you took away from it?

[00:19:12] Just read the pure resilience, I guess, that that guy had, and just that drive to really just reach his goal, and, you know, not let all the nose and the roadblocks you know, getting down and you know, just he basically takes the perspective of every know that you get is closer to a yes, that you're chasing. So just sort of try to adapt to that mindset and get really comfortable with getting rejected or getting nose and yeah, just focus on the goal.

[00:21:02] There's so many different stories like that, where someone's, you know, created a billion dollar business, but prior to that, they got so many no’s and got rejected so many times. 

[00:21:14] On top of that, they almost [went] bankrupt as well. And it's like that scary moment. Do you keep going? Or do you give up and move on to something else?

[00:21:24] Yeah, because I feel like that's what happens to a lot of people throughout, you know, entrepreneurship and starting your own businesses that, you know, there are a lot of scary moments, you don't know, if you're gonna make it through or, you know, be successful. And I feel like a lot of people just give up when they get that that fear. And they sort of pivot back into a nine to five or whatever it is. 

[00:21:47] But yeah, if you sort of just persevere through it, I think feel like, eventually, you sort of come up with a solution or find a way to make it work, because there's not really any other option.

Having shared a multitude of advice to listeners, Freestone takes a new approach this time. He tells us what he would say to his younger self, 10 years ago.

[00:22:11] What I say to myself, 10 years ago, probably go harder, take more risk. Submerge myself in industry a lot more and get really good at discipline and saying no, to other outside influences.

[00:22:34] I totally resonate with that as well, too. Sometimes just hindsight [is] always good, in some sense to be able to help you push forward, because you can always make changes now rather than wait for later.

Jack Freestone:  

[00:22:46] Yeah, exactly. Right. And when you're younger, you know, you always feel like you're missing out or, you know, you always want to go on that next adventure, or what your friends are doing. And, you know, it's really hard to say no to, you know, catching up or doing this and, you know, you sort of want to be focusing on your goals or other aspects of your life.

[00:23:06] Yeah, totally. And then looking forward to the future. What are you most excited about, in, say, the next five years?

[00:23:14] Just growing in the industry, you know, creating something really great for myself here. And, yeah, I would really enjoy helping other people make the right decisions in the property market as well. That's, you know, something that I love to do. I'm really passionate about that. And continuing on with, with property.

[00:23:35] Jack, you've achieved quite a lot in in such a short period of time, you know, you've grown a portfolio, you've also got successful businesses that you've ran, and also running a business now as well. How much of that success do you think has been due to skill, intelligence and hard work? And how much do you think has been due to luck?

[00:23:55] I think you sort of create your own luck, I think I've created it just from you know, getting out there and having a go and, you know, learning from other people that you know, more advanced than myself and that have more experience. That's really helped guide me, but I think the main thing is just to get in there and start.  

Thank you to Jack Freestone, our guest on this episode of Property Investory.