Property Investory
Mistakes To Avoid When Buying A Property For Investment With Luke Moroney
June 9, 2024
Buyers agent and owner of Search Party Property, Luke Moroney joins us on this episode of Property Investory. Moroney takes us on a journey as he explains how he simultaneously traveled the world and worked, and how he had to adjust to a different lifestyle upon his return. Moroney is not only well-versed in vacations, but he’s also a property expert, with 27 properties in his portfolio. Learn from the best as he explains the mistakes he made on his first property, and how you can avoid making those same mistakes.
Timestamps:
00:04:05 | Personal background
00:04:05 | The importance of being first
00:14:16 | Ready for lift-off
00:18:46 | Tested Positive with the travel bug
00:23:00 | A new dawn
00:25:17 | Property Investing Journey

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00:00:13 | Property Investing Strategy
00:03:18 | From Full time to Five Properties
00:12:41 | Ignore the Chatter, listen to your gut.
00:15:53 | Mindset Segment
00:21:14 | Personal Habits
00:29:14 | Cash flow, mind flow
00:33:42 | 80% Mindset 20% Knowledge

Resources and Links:

Transcript:

Luke Moroney 
[00:29:56] I had holes in the walls. I had tenants that left without letting me know. You know, turning up on the front door knocking on that door, and then not hearing a peep inside

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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 discover how Luke Moroney built a large portfolio of over 27 properties. He explains what life was like growing up, how we went from being stuck in NSW to travelling all over the world on cruise ships, and also explains the consequences of buying a property without researching first.

*END INTRO MUSIC* 

*START BACKGROUND MUSIC*

Tyrone Shum
Luke Moroney has lived a full and well-travelled life, he’s now the owner of a popular buyers agency. 

Luke Moroney  
[00:00:48] I am a joint owner in a company called search party property we're a property buyer's agent. You know, through my journey, I've bought quite a few properties, currently sitting at 27 properties in the property portfolio. And, you know, probably transacted over 200 properties for family, friends and clients.

Tyrone Shum 
[00:01:13] Wow, that's amazing. And so when you said that you've been doing that, when did you start in a journey?

Luke Moroney  
[00:01:20] I started back in 2002, bought my first investment property in Western Sydney in Blacktown, which is only about 10 minutes from where I lived, which is often a bit of an early investor or first-time investor mistake that often is made.

Tyrone Shum    
Moroney’s day to day consists of liaising and strategising with buyers and investors

Luke Moroney   
[00:01:51] It's constant conversations on property deals, conversations with individual investors, thinking about what their strategy, what their plan is, what kind of property deals that we wanted to buy, firstly, maybe it's a dip their toes in the water with something nice and easy and simple. Maybe it's a progression with them on a second or third, or fourth property. And it's just that constant drive to increase their property portfolio, increase their wealth creation, for that future choice. So deals and combination of that and mindset and action, which is a big one for everyone, because there is so much fear around property investing, and the pros and cons of it and how it actually works, and how it can benefit you and future.

Tyrone Shum   
[00:02:39] Totally understand and this is the thing with property, there's just so many facets of it, and there's just so much that, you know, one can really only absorb in that one. That's why you surround yourself with a team having a good team around you to be able to do that. Because you know, it's a team play a game, it's a team sport, I guess you can say, without the people around you it's very, very difficult to really go property in yourself as well.

Luke Moroney  
[00:03:03]  I have a little acronym I like to share on social media a lot. It’s ‘turn on your tap’,  T.A.P: Team, Action and Patience when it comes to your investing. So just those simple ideas and thoughts and acronyms can really make a difference for some person. And it's like, okay, that kind of makes sense. Where's the team? what kind of action am I taking? And then, with any investing, whether it be property or other investments, it's about having patience to allow that to grow to, to sustain a whole strategy, not only that one property, or that one investment, but a whole portfolio for the future.

Personal background

Tyrone Shum   
Moroney grew up in the 80’s where all things were simple and easy, but he couldn't have been further removed from that world.  

Luke Moroney   
[00:04:05] I grew up in Western Sydney, like you said, early days was in the suburb of Wentworthville. But I don't have too many memories because I moved out, we moved out there when I was two or three years old. Moved into Girraween on a quarter acre block, traditional type of family upbringing in terms of the 1980s going through that period. Girraween is a little known suburb in the midst of Toongabbie, Pendle Hill, in-between sort of Blacktown and Parramatta. And yeah, I've had a pretty you know, I've had a great childhood, many memories of playing cricket in the backyard with my brothers and sister, and, you know, family and friends would come around often. So, you know, I, I feel like I'm very grateful for my upbringing and you know, the experiences I had and the journey that I went on. So it was great.

Tyrone Shum    
While he lived on an acreage, he was still within the realms of Sydney.

Luke Moroney    
[00:05:24] It was suburbia, really, as opposed to you know, there's some of the areas of Girraween that, you know, it was a little bit farm, a little bit industrial. But the pocket that I lived in was, you know, house after house with quarter acre block. So 1000 square metres of land. It's definitely changed now. The house that I used to live in is actually a childcare centre now. And just down the road, you know, on either side of the road that's been converted into townhouses and duplexes. So there's been a lot of development in the area in recent times, as I guess Sydney has expanded in population. So two as the wanting and needing for being close to train stations, and we're only like a 10-minute walk from the Toongabbie train station. So you know, I used that through my high school years, I use that through my working years where I used to catch a train every day to the city from Toongabbie, which is about an hour ride. So you know, it is well versed in a lot of different areas in terms of thinking about property, because obviously holding onto something like that is... it's gold, right? Like having land in Sydney that's within, you know, 40 kilometres.. difference in proximity, then you've got situations where you can, you know, make a lot of money through or wealth creation through property.

The importance of being first 
Tyrone Shum  
Moroney bought his first property early, but maybe he got into it quickly because he’s always known the importance of being first.

Luke Moroney   
[00:07:00] The primary school was just down the road. So I actually walked to school each and every day. I remember, I was always an eager beaver and wanting to get to school first. So I could be the first one in the cricket nets and have the bat ready and the ball ready for the first time, the first person to come up and bold to me. So my mother always said are you always wanted to be first in line, always wanting to be first. And I guess I've lived that through my working life. Whereas, you know, you're always chasing in terms of the squeaky wheel gets the oil, right. So if if you're not chasing for something then no one's going to reply back to your, you know, move things for you to get things happening. So ultimately, everything's up for you. And it was the same way as me getting to school when I was a kid being the first one to show up to play cricket and waiting for the next person to come play with me. So yes, I was a bit of an eager beaver. And that driven motivation is really shone through or shone through in my life.

Tyrone Shum  
He has fond memories of his childhood, a time he says was full of family, friends and activities.

Luke Moroney   
[00:08:14], playing sport in the backyard, a lot with cousins a lot with a, you know, family. I'm one of four kids. Dad was at work working for the government for you know, 25 odd years, he then ended up buying into, bought a business, ran a childcare centre. So you know, that entrepreneurial space is definitely within the, within the family and it's been passed on. And, you know, mom was at home. So we were very fortunate to have a parent at home. You know, these days, it's often you know, parents are both at work, you know, we're lucky enough to have our mum there. You know, when we returned home from school, I'd eat a feast as soon as I got home, and then eat at dinner as well. So we were very active kids, whether it be at school, whether it be straight after school, you know, playing cricket and football, basketball in the backyard. So we were you know, lucky enough, whereas you see, I guess the kids are today if they're going out to do things because of the small parcels of land that they live on these days. They're having to go to the park. So it's not a case of getting in the backyard and playing some of these sports. So I feel very fortunate. I feel very grateful about our upbringing. You know, there's always that those dramas that we do have in our lives, but what are we so grateful for? And that's what I really reflect on and I feel that I'm very lucky and fortunate, especially when you hear other people's stories, right?

Tyrone Shum    
[00:09:45] You mentioned that you had cousins and family and stuff like that and being in a family of four, were all your cousins living close by? Is that why you guys were able to, you know, hang out with each other and go and play sport together.

Luke Moroney   
[00:09:58] Yeah, absolutely. They're within sort of 10 minutes, I guess it was that old avenue of, you know, family or kind of often stuck in those areas very close by where it's, there's more of a, I guess, a division these days. And I know when I've travelled over to the US, and you see the proximity that families leave over there, one's a New York, others in LA, other ones in Texas, so for them, as soon as they go, they leave high school, it's going off to college in another area of the country, we tend to just, you know, stick in the same sort of city at least. And previously, 20 years ago, 40 years ago, it was, you know, stay in the same neighbourhood, be crazy to live in, you know, for someone to live in Western Sydney, and then even someone to live in northwestern Sydney. So, you know, it was kind of frowned upon if one of the family left the area. So, you know, it was all like, so close to family and family was a big one in those days. And I remember, we used to do little athletics on a Friday night, and then everyone would be over my grandmother's house on a Friday night straight after and a little three-bedroom house that she had that before, you know, 30 or 40 people in their cousins and, you know, other family members and you know, extended family would come and visit.

Tyrone Shum  
[00:11:22] I can totally, totally relate. And the reason why I say that is because I am a family of four as well. And my family, my father is a family of five. And because we grew up in the right area as well, everyone lived literally in there, you know, my uncle lived North Ryde, my grandfather's place in East Ryde. It's like, literally everyone was in Ryde. And we'd have our Sunday meets just like you know, any 30, I can tell you that we didn't have that many kids, but I think we'll probably have at least half of that. And I remember we did all our travelling, we hung out as families pretty regularly, you know, around there. And unfortunately, you don't see that anymore as much. And especially with lockdown and COVID, It's even harder now. But I do remember being so close, you'd end up just going over to their place and hang out with my cousins or hanging out with my siblings and stuff. And we'd play. Yeah, I do miss those days. It's great that we're talking about that as well. Good memories. Good memories. Absolutely. So after say primary school, you mentioned you also used the public transport in Toongabbie to travel, you know, for school and stuff. Did you stay in the local area for high school? Or did you do travel further out?

Luke Moroney    
[00:12:22] No, it was actually quite further out. Actually. It was all the way up in Castle Hill that we went to school. So I think my mother was set on us to go to Oakhill College at Castle Hill. So it was walk to the station, a 10-minute train ride to Parramatta, and then a bus for 45 minutes to Castle Hill. So yeah, it was pretty epic. And both my brother's one left in Year 9 one left in year 10. I went all the way to year 12. And, you know, it's kind of like an outreach way, at least on public transport. That will really toughen you up definitely. doing those. I guess there's really hard knocks, I guess, sometimes we don't realise maybe some of the pain that we went through as kids or the hard work we did as kids is really developed us. I guess it can go both ways. Right? He can, he can make us or break us. So, and I think it's really just resonated with me to just like work hard at things and you can achieve.

Tyrone Shum   
[00:13:22] I know Oakhill college because I live only live maybe 10 minutes down the road from there. So I'm very familiar. But back then when public transport system isn't as good as it is now. Like, you know, now we've got the metro, it's very easy to get there and so forth. But I couldn't imagine you travel what an almost an hour and a half every time, at least, you know, just one way it wasn't. That way you'd be on public transport for at least three hours a day.

Luke Moroney  
[00:13:46] Yeah, absolutely. It was, I guess sleeping on the bus was a big thing back then. And I couldn't wait to get my licence in year 12. You know, being able to drive to school at least a couple of days a week what? You know, just like change your life at the time, So you know, it was great. Like, I wouldn't take it back.

Ready for lift-off 
Tyrone Shum   
Moroney yearned for more than being stuck between four tortuous walls after he finished school. 

Luke Moroney    
[00:14:16] I was really committed to, you know, I wasn't the avid, you know, avid school fan, you know, into the books or anything like that. I was pretty, pretty much like last minute.com when it came to doing schoolwork. And I was in a situation where I didn't really want to go to University. I couldn't really stand the thought of actually going in to study for another three or four or five years. So I decided, Well, what do I like? What do I know? I didn't actually have any idea what I wanted to do. I did some work experience in year 10 or in year 11 in the travel industry and decided okay, well travel sounds exciting, and I want to see the world, maybe that's the best way to do it. So I did a short the shortest course possible to get, you know, tick a box and get a certificate, and then went into looking for a job. 

Now, it was really interesting back when I was 18, just left school, and I went into doing that course, straight after that course, the unemployment rate in Australia was something like around about eight or 9%. So, when we have a look at what's happening right now, where we got five or 6%, over the last, I don't know, 10 years or so at least, it's been like that. I, I was actually able to get, you know, two interviews, and I was successful on both interviews and got the choice between one job or another. So, you know, I guess those jobs are always out there. And it was, it was great for me to just get in there and get started. And, you know, sink my teeth into a career and work and, and see what how I progress, I made the choice of taking the job at a larger company, as I thought that that would, you know, be a lot of learning a lot of growing potential promotions, you know, thinking long term. So doing the hard work or the, you know, that those tougher jobs early on, for the chance to, you know, really promote myself and learn as I went along.

Tyrone Shum   
With a burning desire to travel and a need to work, Moroney pursued a career that could give him both. 

Luke Moroney  
[00:16:39] I was travelling tourism, we were actually a wholesaler of airline tickets. So the airline tickets these days are all online. But back then it was actually printed tickets. You know, people had very creative destinations that they went to, so that involved getting multiple airlines on an airline ticket. So that gets quite confusing. And, you know, we basically then sent those airline tickets to the real estate agents for them to give to their, their clients, their passengers. So, you know, we were in the in-between the airline and the travel agent, just about to say real estate agent, the travel agent. So, you know, and I progressed through in terms of working in the tourism, from the airline ticket side of things to being a sales rep. And, you know, I was actually at one stage the airline representative for Sri Lankan airlines, back in the early 2000s, when they were actually flying into Australia. 

Tyrone Shum    
[00:17:43] Wow, that's exciting. So did you get a chance to travel as well as being part of that?

Luke Moroney    
[00:17:49] I did. Yeah. We got a few trips along the way. Yeah, I guess my fondest memory was going to Sri Lanka and the Maldives. Some, you know, very exotic destinations, beautiful places. You know, it's a little bit I guess, what it was with to two different destinations so close to each other, where you've got, you know, Sri Lanka or in some of the issues that they've had within their country, going over to the Maldives. And you're, you're looking at beautiful island locations away from everything can relaxing on the beach, beautiful weather and yeah, it's quite was quite a special trip.

Tested positive with the Travel bug
Tyrone Shum    
On top of travelling for work, Moroney was fortunate enough to live abroad and travel through the US. 

Luke Moroney   
[00:18:46] I actually spent more than four years overseas. And I actually worked in Whistler in Canada, on the ski fields. So I worked at a hotel. And you know, during the day I was out there on the mountain snowboarding around. So some really fun memories of Whistler and, you know, British Columbia, Vancouver, that sort of area. I really enjoy my travel around the US. So many memories, so many great people along the way. So inviting and so accommodating, you know, to the actual fact that I took a seven-week trip after travelling around meeting so many people a subsequent seven-way trip where I didn't actually pay for a night of accommodation because people in San Francisco and Denver and Nashville and, and Miami and Florida and Fort Lauderdale, all accommodated me along the way. So, you know, people have this bad thing about people from the from America and the USA. And but I've had some really good memories around that which has been really good and I guess after that stint in Whistler, my working visa expired. So I had to make a decision what was the next plan? And, and I actually went for an interview at a cruise ship company, Princess Cruises well known around Australia right now for some unfortunate reasons, but we're in a situation where, where I was working for Princess for 18 months, and, you know, had some really good memories around, travelling around the world. So starting my ventures in Dublin, going around the UK, up to Norway and Iceland, and then all the way through the Mediterranean, the Suez Canal, all the way to Thailand. So some extensive travel in my, in my, in my past.

Tyrone Shum   
Eventually, Moroney satisfied his craving and decided to come back home

Luke Moroney  
[00:21:09] I think that you know, four years, it was a good test. I felt like I needed to progress in areas of my life and think about what the next stage was, you know, it was all about the factor of thinking, you know, am I taking this into a fantasy land type of situation where I'm just travelling the world living from paycheck to paycheck? Or do I want to get serious and progress my learnings, my growing and, you know, areas of my life and my working life that I wanted to, you know, to progress with? So when you are travelling, especially on the cruise ships, where you're doing the same thing each and every day, and it was about trying to, you know, maybe get back to a normality in life. And I just felt like it was just really a Fantasyland type of situation. And I wanted to progress and grow. I grew enough in, you know, when I was there, with promote, you know, trying to get promotions on cruise ships is really, you know, really tough. It's kind of like a time that you spend there rather than your, you know, your expertise and your skills and how good you are. So, you know, I was like, Well, you know, after a week or so, I thought I was really good. And I want to promotion, but they go well, you've got to be here for three or four years. I'm like, okay, that's a bit of a joke. Time for me to you know, to think about this and take it for what it is spend the time and holiday and, and see the world, but then eventually want to go back and, you know, realise a life where I can, you know, create more for myself?

A new dawn
Tyrone Shum    
Moroney returned to a much different life than the one he was expecting. Feeling misplaced and lost, he had to reevaluate what he wanted for his journey. 

Luke Moroney   
[00:23:00] I think it was around 2005 or six that I came back to Australia. And, you know, it's interesting that and you kind of reflect on that day that that timing, I got a little bit lost when I came back, to be honest. You know, a lot of people had moved on from where I was in the past. So I had to like really reboot, restart my life. So really interesting. I found myself getting back into the travel industry, that's probably the only thing I knew back then, of what I've been successful on, you know, what I've had in terms of skills and knowledge and experience, and then got to a position where I had to, you know, start a new friendship started a new lifestyle, a new way of living. So that's it, it was, you know, it was a real, you know, eye-opener, I'm just like, Oh, I thought I could just get back with family and friends and things like that. But it wasn't the case. Everyone had moved so much on and had such a life without me being there. So yeah, really interesting experience.

Tyrone Shum  
[00:24:04] Wow. And what about family, you know, as you mentioned, you know, friends and stuff like that people do move on, and they've got their own lives and so forth. And they kind of live day to day kind of thing. But what about family? You know, I guess Did you come back and stay with your family for that period of time, while you sort of settle back in?

Luke Moroney   
[00:24:20] Yeah, lucky enough that I was able to do that. And, but I guess there's a little bit of a sense that, you know, I haven't been there and like some of those stories and experiences that I haven't been a part of, have been, you know, been missed by me. So initially, it took maybe a year or two to get back in that of having memories and stories to tell each other. Whereas I lived a life overseas, which was very different to what their experiences are. So to get that connection back was very interesting.

Property Investing journey
Tyrone Shum  
Moroney bought his first property in 2000 before he started travelling, but with little education or guidance, his first buy did not warrant the results he was hoping for. 

Luke Moroney     
[00:25:17] I kind of wanted to tick off that box of getting investment property, get that done, sort of get tenants in place, and then go in and do the travel. So, you know, initially, I don't really, you know, heard a little bit about property and how things worked. And, you know, it was an idea from my parents to say, you know, to all us kids through the years to say, you know, maybe you want to get out there and buy a property. And that's the extent of the learnings and teachings that I got from my parents. Now, is that wrong or right? Well, you know, it's a great thing of them to put some ideas and actions in place for me. And, and I guess the maybe the thing that was lacking not to their, their fault, or anything is that you know, to try and educate me along the way of why I'm doing the investing, or where should I be investing, or the knowledge skills and the experience that they've had that that could benefit me? Because I found that in my first investment, back in 2002, that property didn't actually grow for 10 years.

Tyrone Shum   
[00:26:25] Wow, that's interesting. And then I guess that's the thing, that's part of the property cycles, things go up and down. And, you know, normally, on average properties, increase in price or grow at about every seven to 10 years. And that's the maybe a purchase just after the cycle just kind of finished and yeah, interesting.

Luke Moroney    
[00:26:42] Yeah, I bought at the peak of the market back in 2002, and three, in Sydney. So there was, you know, allow for quite an extensive time now, there was, you know, some ups and downs along the way. So if you bought at the low points, yes, you would have made a bit more money than I did. But I bought, you know, at a very high point. And the market just flatlined pretty much apart from those ups and downs along the way. But between 2002 and 2012, there was very little growth. And then, you know, Western Sydney really was the first one to take off. In 2012, before you saw the rest of the Sydney market take off in 2013 and 14 if you go towards the Northern Beaches, where that really started to go aggressively, you know, up in price.

Tyrone Shum   
His first experiences with property will be etched into his memories forever, but maybe not for the best of reasons. 

Luke Moroney    
[00:27:40] It's definitely the most memorable one. You know, it's always your first that you never forget. You know, and I think it is the most memorable one, because all the things that I did wrong, we often have that, you know, memory or mindset about ourselves to focus on the negative, right. So I guess that's the way we as humans that we are built. So you know, all the things that I did wrong, where I, you know, basically pick the first house that I saw, try to get a, you know, a 2K reduction in price to feel like I got a deal and got into a position of just, you know, quickly trying to put the deposit on the property and the agent really tried to, you know, push and hurry us through to get that done. You know, you know, I bought a regular three-bedroom house in the suburb of Blacktown. 

Yeah, it's in the past has proven to go really well. In actual fact, my brother had previously bought in Blacktown, four years before for $150,000. And, you know, he was able to double his money in five years, I took 10 years, and I had no growth. So it was really 15 years before, you can see actually any growth or substantial growth in that property to come through. So, you know, going off past results, and looking at what past results did and thinking that there will just be the same next time as well. It's not, it's not the case. And, you know, people found that in, you know, Sydney property market, maybe over the last four years or so, as opposed to the previous five years that so between 2012 and 2017, you know, property markets in Sydney just went skyrocket. They've remained pretty flat up until over the last four years, up until maybe the last six months or so. So, that experience that I had between 2002 and 2012 has really played out. But, you know, going back to your question, in regards to that, you know, the memory of that first property, trying to you know, picking that property at the peak of the market was one trying to manage the tenants on my own that was definitely another one. 

You know, I had holes in the walls. I had tenants that left without letting me know. You know, turning up on the front door knocking on that door, and then not hearing a peep inside, eventually just opening the door and having a look at the mess and the holes and the, or the dramas that will, that led me to being, you know, there on a weekend cleaning up and, you know, some terrible experiences, you know, when I first invested in property, and but I always had the mindset of, I'm going to hold this for 50 years, it doesn't matter what happens. Now, I'm just long term, I'm a long term thinker, I guess where I've seen the struggle with a lot of people is, you know, they have that one incident where a bad tenant comes through, and they want to sell immediately, it's just too hard work for them. And I know a lot of people that sold in 2005, and six and seven, that actually, when they sold, they sell it for less than what they bought it for. And, you know, that's where, you know, and, and another factor is they don't get back into investing, they don't learn from their mistakes. The great thing about it is I learned from those old mistakes of not buying at the peak of the market, not managing my tenants. And, you know, having the team of people around me, you know, goes back to the acronym I talked about team action and patience with investing.

Tyrone Shum  
It’s no secret that Moroney is a property expert, with a huge portfolio and enough knowledge to last a lifetime. 

Luke Moroney    
[00:00:13] I’ve currently got 27 properties in the property portfolio and got up to 36 at one stage. And then sell, you know, I'm, I'm an advocate of buying and selling, you know, I just think, you know, money can be used in better ways. Sometimes if the markets going to, you know, stabilise or decline in the next five, seven years, it's better to maybe take money out, and then move it to another location that's going to provide better value, and better wealth creation. So, yeah, I like, you know, people, I guess the big one that I hear a lot is like, how do you how do you manage your property portfolio having 27 properties? Well, it, you know, probably takes on average, maybe an hour a month, and that includes, you know, working or organising yourself at tax time. But, you know, an hour a month per property, if you think about a property being as a single investment property, being a business, and, you know, pretty much like running 27 businesses in the portfolio, then, you know, it's not really that much time when you think about spending one hour a month on an investment that is, on average, about four or $500,000.

Tyrone Shum    
Besides having a lot of properties, Moroney shared with us his strategy and how he has accumulated a lot of these in a short period of time.

Luke Moroney   
[00:01:46] The strategy that I've used is, is a buy and hold strategy. So you know, for me, it is the patience around building a property portfolio, there are there have been some renovations that I've done, that has enabled me to draw out equity, I've, you know, purchased property, as a home that has allowed me to draw out equity as well. And progress with the property portfolio. I've also done being an investor in terms of working with vendor finance properties, so they're like a rent to buy a little bit more complicated type of situation in terms of investment and getting your head around the different the pros and cons around and how that does work. But it definitely has provided, you know, that up ticking cash flow that has enabled me to then you know, leave my nine to five job previously that I was working in, having that cash flow, the constant cash flow coming through, and then and then having the buy and hold properties that have then accumulated growth. So having that, you know, balance of the two there capital growth ones, and cash flow properties as well.

From Full time to Five properties 
Tyrone Shum    
Moroney wasted no time building up his portfolio until he eventually had enough to quit his job and focus on property full time.

Luke Moroney   
[00:03:18] It was probably it was after about five properties. So like, I really had an inkling for property investing, and how it was gonna work, I had the capability at the time to, you know, still get the loans coming through with my partner. And, you know, we're able to progress that property portfolio as we go. spending the time while we're in situations back in 2012, and 13, where finance was a lot easier than it was to be able to be attained then, then right now. And just knowing that the cash flow was coming through, and if I continue to do more deals, then that cash flow would, would ever increase. I had a strong focus around what I wanted to do. And at one stage, I wanted to I put up a goal for myself to buy 15 properties, within a two year period, I was actually able to do that within 18 months and not 24 months. So you know, that was hard work. That was, you know, if I tried to do the same thing today, I wouldn't be able to do it. 

But you need to put in the hard work. So I was the first one that turned up at a seminar and often an hour or two before it started because I know the guys that were hosting the seminar, they would always turn up early so I’d you know, get a little bit of time one on one with them. And then I'd be almost like the last one to leave kind of goes back to my days when I was you know, going to school and be the first one with the cricket bat ready to go waiting for someone else to come and you know, practice and learn and grow. Same way was with my property investment portfolio and that growth. So I guess you You know, the message is for other people, if you really want to make a go of these things, everyone's got to do different circumstances. And I'm not saying for people to get 27, or 30 or 50 properties, but if you can get to five or 10 properties, you know, what kind of work that you do need to do is to put that hard work in to put that hustle in, to be motivated and driven to, you know, make the best of what you've got for your story in your life.

Tyrone Shum    
Moroney knows the importance of soldiering on. He explains how no matter what challenge arose, he was ready to keep pushing. 

Luke Moroney   
[00:05:44] Key challenges that I faced, I don't know, if I like really was kind of, you know, there were probably, there were little bits and pieces, I was so focused on my goal and what I wanted to achieve, that nothing was going to come in my way. You know, I was just the, like, I've never had a stronger focus probably in my life, then right, then with that goal, to be honest with you. There were some people that even some of the team was saying, Luke, how about you focus a little bit more on putting your granny flat on the back of that property that's on 1000 square metres, so you can increase the cash flow. I'm like, no, I want to buy on my next property, I just want to keep buying properties, I can worry about the granny flats down the track, I want to accumulate property, I think that's a great time to do it, that right now, the more properties I get, the more growth I'm gonna get down the track. And, you know, I heard from another team member that, you know, in terms of the mortgages, that it was gonna be beneficial for me to get as many loans as I can, right now, because the lending is quite easy, and it's only going to get harder down the track. And that proved to be right. 

So on one factor, I've got the mortgage broker, letting me know, you know, really go strong on the lending side, and I've got the, you know, the another team member letting me know, and was like, or, you know, be a little bit conservative, which granted was a good, good for me to hear, but not something that was in my focus. So I, you know, push that to the side, keep my focus strong, looking for the next property and looking for the next deal. So I don't think I had too many challenges. It was, you know, more based on my time and my effort that I think some of the challenges are, you know, do you go to that seminar, like, obviously, we're in COVID. 

Now, so a lot of seminars, and webinars are going on, online. But back then you had to, you know, go from your house, to the city or out to the suburbs, and there might be a drive at nighttime, you'd, you know, you had a day at work and you just sick and tired and you just want to sit in front of the TV, but you had to make that effort, get in the car, get on the train, go to that seminar, learn something connect with people. And, you know, I think one of the best things I did was at one particular seminar, I, you know, put my hand up and said, I'm struggling, I'm struggling with this idea or this concept, I need some help. And so on the back of that, that really changed things for me by just putting up my hand. And I think that's a big one, I always profess the people is start talking, start interacting, you don't even know what's actually going to come up whether it's a deal for you, whether it's a joint deal with other investors that can really just elevate you into, you know, a new circumstance, a new strategy, a new idea.

Tyrone Shum     
With his mindset on 15 properties, nothing could get in his way. But was there a reason for this magic number? 

Luke Moroney 
[00:08:51] I'm a very random person. So no, it was very random. I just like, okay, 15 sounds good. Let's go. And I just put it, it was, it was quite interesting because I put it up 15 in two years, put up on the wall, and I hardly it was in my like an office that I had in the house, but I put it up on my wall. And I didn't really think about it and didn't really look at it. But it wasn't until like I got that 15 and then a month later, I looked at that, you know, post I put on the wall because it was still there. And I'm like, Oh my god, I achieved that not in 24 months, but actually in 18 months, just put that was just the ultimate focus. You just had the tunnel vision on had the blinkers on and it was just I was going to achieve it no matter what. So yeah, if you can hear it in people's voices and people that I talked to on a constant basis, whether they've got the what it takes to get there, or you know, they've kind of floundering around at the moment and not really ready. So you know, having that ultimate focus whether a business or life or You know, in terms of property investing, focus is huge.

Tyrone Shum    
As Moroney accumulated properties, he was accumulating wealth in the millions. 

Luke Moroney   
[00:10:16] the size of the portfolio it would have been in regards to probably about seven or $8 million at that point. And generating maybe a cash flow was especially dedicated to more vendor finance properties rent to buy properties, which were higher in cash flow. So they generated probably something around about 70 or $80,000. In cash flow. You know, for all the viewers that are listening, it is a tougher strategy to get involved, it's more litigious these days, requires a lot of licencing. And, and more difficult to get into. So you've got to be really careful around that strategy. So it's not as much done as it was, you know, 10 or 15 years ago, so you got to be really careful around that. But it came at a really good time. For me, it was high in cash flow, it enabled me to, you know, didn't, I didn't really need to have a job at that time, because the property portfolio looked after itself, and provided me with some income for expenses. So, you know, it really worked well for me at that time. And then, as I was growing that cash flow, I realised for myself, once those properties leave, do leave my property portfolio, because that rent buy situation was over a five year period, I needed to have some other properties that were going to grow in value, that will also going to provide cash flow down the track. So I did a combination of both having those cash flow and then having that Capital Growth Properties along the way,

Tyrone Shum      
[00:11:47] and is still currently have those rent to buy properties in your portfolio. Have you mixed it out now to more focus on purchasing the properties and then having the cash flow? 

Luke Moroney   
[00:11:57] There’s still a few of those rent to buy properties in my property portfolio. They're obviously less and less. And then it'll be I guess, a case in future of continue to buy, you know, more buy and hold properties along the way. There may be some rent to buys in there in future, but at this stage, yeah, just sitting on the sidelines, because finance is a little bit harder these days, especially having a larger portfolio right now.

Ignore the chatter, listen to your gut
Tyrone Shum    
Moroney, now cashed up and successful, makes a great example of where individuals can get to if they put their mind to something. But he didn't get there overnight, there was an Aha moment along the way that taught him to stick to his gut. 

Luke Moroney    
[00:12:41] There's a property, that was purchased in Victoria that I bought through, you know, through a buyer's agent that I was using at the time. And it was really interesting, I did an article, they set up an article to do it with Domain. And it was a property that was purchased in Melton south, so about an hour outside west of Melbourne. And I bought it for about 190,000. And doing that article, that time, they took my photo, put it up on Domain. And there was a whole lot of flack from people that lived in Melbourne city, about a Sydney investor buying in Melton south. And they were just saying drug capital of Australia. It's a terrible demographic, and all these sorts of things were coming in all the comments back to me, in terms of I'm a silly investor buying in an area that has the lowest social economic area, lower demographic, you know, around that particular area, and none of the comments, not something that I said, but it was comments coming back from people that lived in Melbourne. 

And only three and a half years later, I was able to sell that property for $375,000. So it's $190,000 worth of growth in three and a half years. And when you look at it, you say that's kind of someone's salary for three years on buying an investment property. So, you know, I guess, the initial thought for me around it, yes, that was an aha moment. But I think when I was building about property portfolio, and are seeing other people at seminars, I went to that had five and 10, and 15 and 18 and 20 properties. That was my aha moment because they're going the potentials there because I see other people that look and feel like me, and are about the same age that have created their property portfolio. Why can't I do that? So I went in, as soon as I went to that meeting, I was like, the next day, I took that action and made that call and went to that next stage. So I think the initial aha moment was seeing other people seeing that they've built a property portfolio. And, you know, well, if they've got a job and they're building a property portfolio and I've got a job, why can't I build a property portfolio so It was the aha moment before it happens. I think, you know, I had that vision. And I saw that belief through other people. But I guess the big aha moment was when the results came as well. Yeah,

Tyrone Shum     
[00:15:13] it's amazing when you say that too because it's the same thing. I, when I first attended to a few of the local meetings around here, initially thinking, Oh, you know, How's it possible that these people actually will do it, because you read it through the forums, and they've got, you know, 2030 properties, and then once you start talking to a lot of them, that just like you and me, and then they're just basically built it up, you know, over time, and, and then you just start to go, wow, you know, if they can do it, you start to build that self-belief, and it is possible, it's just a matter of surrounding yourself with like-minded similar people, where you want to, you know, I guess model off the same things that they've done, you know, I think it's so true, you know, the top five people that you surround yourself is basically what you become.

Mindset Segment
Luke Moroney  
[00:15:53] Absolutely. And I think a big thing that people need to remember is around the patience, you know, so many investors come and say, I want growth in a year I want growth in two years, I want to, you know, change my life forever, in a short amount of time. It's like, if you don't come into this with a vision of patience into it and saying it's a 10 15 20 year journey, then you set yourself up, I believe, for failure. So you've got to be really careful on that patient side of things. I just like all areas of life.

Tyrone Shum     
So where does the property mogul go from here? 

Luke Moroney   
[00:16:46] It's a learning and growing strategy. To be honest, I probably don't know what it really is, I feel like I'm in a flow state of where I really enjoy property right now. I really enjoy the coaching aspect of helping clients through growing their property portfolio, I actually am in a position where I'm actually also coaching property developers, in terms of their mindset and the work that they do. A lot of what I do as a buyer's agent is around the coaching aspects of taking action and making, you know, taking away some of those fears in terms of debt, and how things can work. So that's why I've progressed in terms of enabling or learning for myself, and by doing courses, and to get towards being a better coach, to be a better facilitator for people, you know, doing that wealth creation strategy. So at the moment, that's where I'm at, is there a bigger piece for me? I believe so. Do I know what that is? No, not yet. You know, I do a lot of work in terms of coaching in terms of, you know, volunteering on a mental health basis. And, you know, I know that within me there's, there's a part that is a bigger, why I just haven't defined or, you know, had a look at that as yet.

Tyrone Shum    
Moroney has pointed out that it's all about personal development and he shares what his favourite resources and people are.

Luke Moroney    
[00:18:50] I guess there's, yeah, you know, Julian, who I work with is a big one, in terms of the work that he does, and the, the constant effort and the dedication that he has, you know, within my circle, you know, I've had a lot of people along the way, who have been mentors within the workplace. For me, I remember coming back from my first overseas trip when I was working in the travel industry. And my boss at the time, said to me, really reflected on the change he saw and me saying that actually, at 19 years old, for someone to reflect on that change, and see that change in me, really gave me extra belief. So that was that 19 and there's been a lot of people on the way and I think I've, you know, I've had coaches myself. I had one coach, that really, I thought I was going to come into the coaching side of things in terms of a business sense. And quickly after the first 20 minutes or so the first session, we realised well, both of us realised she probably realised before I did that I needed to work on my life side of things. So that I think that first coaching session started to progress me in the personal growth and personal development side, where I started to take on… going to Tony Robbins events going, you know, spending, listening to some of the, you know, the biggest names around the world, whether it be a podcast, I'm a big fan of Gary Vee Gary Vaynerchuk. And I went over to the US to his office to do a one-day seminar that cost me $10,000. 

You know, and I spent, you know, we spent an hour a group of 10 of us spend an hour in the room with him, and then the rest of the staff for the rest of the day. But it was just being in that energy space, that learning and growing environments, that higher level that I always kind of seek out for myself. So whether it be podcasts, we're so fortunate these days to be able to have it at the touch of a button to have all the information, the motivation, the quotes, the ideas, the thought processes that people go through by just opening your phone. So I'm a constant believer in that. I think what I've personally done for myself, which is, you know, been really interesting journey, in terms of social media. 

Personal Habits
And for myself, I've done a Facebook live every day for the last four years that started out with, I had a speaking coach that I work with. And she said, Well, how about you do some practising and training by doing a Facebook live each day, in the month, in a month over a month period? And I said, well, being the way who I am, I'm just like, no, not a month, I'm going to do this for a whole year. 

And then she just started laughing at me. And I was like, No, I'm actually gonna do it. So it ended up going for a year, then I can just continue on. I think I'm over four years now of doing a Facebook Live each and every day. So I like it really strong believer in that consistency part of it. And another thing that I've done, which I post all the time on social media is the running that I do each and every day now. So I do a seven-kilometre run. And that started just after Christmas back in 2017. And I you know, not waiting for the first of January, I decided to Okay, I'm gonna try running 7Km's every day, I thought 5 kilometres was you know, maybe a little bit too short, not really much of a push 10 kilometres a little bit too far and probably take up too much of my day. So just settled on the 7 kilometres. It takes, you know, about 30-35 minutes. So I, you know, I've done that every day now. For you know, three and a half years, I'm into my fourth year of running. So it's like 1300, and something days in a row of running.

Tyrone Shum    
[00:22:47] Congrats, that's amazing. I used to do a lot of cross country, like, like yourself, and yeah, it is definitely something that you just build up. Because initially when you start running, your legs are sore, your body's just not used to it. But once you consistently do it, you know, it becomes a normal, you know, it's not hard at all. I mean, it's not easy as well. But also at the same time, it just builds that endurance as well, too. And consistency, as you said is key.

Luke Moroney    
[00:23:13] It's really, it's really tough in the mindset each and every day to get up and think I'm gonna go run, you know, 70 80% or and sometimes 100% of my capacity to push myself each and every day to roll out of bed. Get up there, get ready, you know, go out at 4 am 5 am 6 am run. Sometimes 8 am like, you know, sometimes I have a little bit of a sleepy, but um, you know, normally it's that, you know, strong push to get through that initial negative mindset when we do wake up, right? How many people go through that probably each and every one of us?

Tyrone Shum  
All that running isn't for nothing. Moroney has participated in marathons across Australia 

Luke Moroney 
[00:24:10] I've done to actually the Gold Coast marathon and Canberra marathon and then the next day, seven kilometres.

Luke Moroney   
[00:24:23] So the marathon 42 K's and then yeah, back on the after the first marathon in the Gold Coast. I remember took me I was actually on the treadmill the next day and it took me 49 minutes to do the seven K's when I normally do it in, you know, 32 minutes. So that was really hard on the body. real strong push. But, you know, by telling that story now. It's amazing. You know, going through this journey. I'm not really setting out to inspire or motivate anyone I just sort of documenting my journey but it has touched a lot of people whether they do a month of running. Whether they've decided to just do one run, you know if you can influence and inspire people in so many ways, and I'm sure Tyrone you are doing the same through, you know, your, your podcast here to share some of your story and other people's stories to see what is possible. It's like the same way we talked about going to that seminar and seeing the belief that other people have done it. And so it's like, well, why can't I?

Tyrone Shum     
Although Moroney doesn't have any regrets, he’s got a piece of advice for his younger self. 

Luke Moroney   
[00:25:43] go harder. Like, it's just, you know, I like I've got no regrets. All the things that happened in my life, I've been really grateful for the ups and the downs, the roller coaster, they just teach you so many lessons, like I remember, you know, a boss saying to me, you don't have what it takes one day, and that really cut me up for a little while and probably still sits with you a little bit. And you just, you know, use the all sudden, lack the belief, even though I found out only a week or two later that they actually did something to undermine me take away the focus from them. So even though that happened, you know, it did drive me, you know, a lot hearing that. In actual fact, I was able to change my income, which was on the award at the time at like, $33,000 going back in 2010, or something it was, in 18 months later, you know, I sat on a wage after leaving that job and going to another company at $100,000. So, you know, get like, the message for me, I was like if I was going to go back until I was like, go harder for, go as hard as you can. Enjoy, have fun. Probably do the same stuff really like it?

Tyrone Shum     
[00:26:08] I also sort of got a strong message from this, as well, as you know, turning negative into a positive, which is exactly what you did. You know why? Why hang around with these negative people saying and putting it down, you may as well go and find something better, which you did. And it turned into such a great positive which enabled you to do a lot more things as well.

Luke Moroney
[00:27:29] Kelly Clarkson said it well if it doesn't kill you, makes you stronger, stronger.

Tyrone Shum   
The success Moroney has had is hard to beat, but he’s not stopping anytime soon. Now his journey is about helping others to succeed. 

Luke Moroney    
[00:27:51] For me, it's, it's about connecting with people, like I spend a lot of time with developers these days, on a personal side of thinking about what I can potentially generate with them in future, whether it be my own personal property portfolio, and maybe developing some of those properties. Because I don't really see myself as a developer. So thinking about how others can really help me. So I spend a lot of time developing those relationships for the future, maybe to invest with some of those developers in future do to grow and build on something. You know, like, I feel like I'm in a position of being in flow with it. So if it feels good, I'll go towards it. If it doesn't feel good, I'll be away from it. And I think it's kind of that simple for me. Maybe it's not allowing me if I think about it for myself to then strive or have a goal towards something. But at the same point, I feel like I'm having those really good conversations that are generating a little bit more each day, a little bit more each day. So taking those steps along the way. How is it gonna look in five years time? I'm not quite sure. I don't know as yet. And I'm in with the journey. I think it's a really good one positive one. I like where I'm at. I'm feeling really good about what I do. And it's making a difference to people, which is really good.

Cash flow, mind flow.
Tyrone Shum   
[00:29:14] I love that. Love it. Look you mentioned quite a few times in our conversation about being in the flow. I'd like to sort of explore that a little bit more, because it's such an important topic. You know, it's easy to just to get into day-to-day, you know, swing of things and you just do it because it's part of what you need to do. But how have you found for yourself to be able to get into that flow state because it's... I hear It's a challenge for a lot of people to be able to be in that mindset.

Luke Moroney    
[00:29:41] It's a huge challenge. I think it's being about being present and grounded. I think about it in conversations that I can be guilty sometimes of being on the phone and then typing in an email at the same time then you lack presence in what you do, being 100 in what we do. I think I'm a little bit of a, I just remember back to school as well, a little bit of a daydreamer as well. So that I think allows some thoughts to come in to, you know, see that you are tapping into intuition and thinking about what is actually good for you. And what works. So, you know, there's been some tough decisions that I've made over the last couple of years, business-wise, personal wise, that have then, you know, not felt really good and was like, okay, that needs to change. And then you actually, do you change it straightaway? Or do you allow a little bit of time to make that change? Do you really push things? Or do you just allow things? So there's a lot of different things for me, but I think, time out, and it's kind of not like scheduled timeout. It's kind of like, okay, I just need to be daydreaming right now. So I just do. And then I just need, like, if I feel like I've worked so hard in the day, and I'm I feel my body is not listened to my body. If I like on a run, as an example, if, you know, the body's not feeling that, you know, quite so well, I'm not gonna push past that barrier. Because I know, I'm playing the long game of running seven kilometres every day, not to try and beat my personal best every day. Really, my personal best is running that next day, running that next day, getting up in the morning is my personal best, I guess the Grateful side of it comes in towards being in flow. So many people will push I guess, in terms of trying to get through an expectation or barrier and don't sit with themselves about what's really going on.


Tyrone Shum  
[33:28]
So look, last question for you then is how much of your success has been due to intelligence skill and hard work? And how much of it do you think has been? Because luck?


80% Mindset 20% Knowledge
Luke Moroney    
[00:33:42] It's all it's about mindset. Like I think what we do, and you know, I talked about with people it's 80% mindset and 20% knowledge, skills and experience. luck, what you make your own luck. That's simple for me. Like, I wouldn't have a portfolio now if I didn't put in that hard work. I saw something on TV. Ryan Reynolds was on there, movie star from Hollywood, right. And, you know, he's progressed through his career and, you know, one of the biggest Hollywood stars now, but he goes, it doesn't come easy. You know, I had to work for you know, audition after audition after audition. I'm sure that he went through same way for me just like turning up at seminars being the first one there and the last one to leave. You know, you get the luck or you get the good you get the wins because of the hard work. So don't mistake it people if you're watching this now and to build a property portfolio, or to have wealth creation, or to succeed in areas that you want to achieve in you got to put in the work. Like Tony Robbins will tell you that Gary Vee will tell you that Oprah will tell you that like the amount of people, they all the successful people will tell you that. You got to put the work in.

*** Outro ***

Tyrone Shum
Thank you to Luke Moroney, our guest on this episode of Property Investory.