Luke Moroney is back to share his expert knowledge with our audience. In this tell all episode Moroney explains how he accumulated 15 properties in 18 months, totalling $8 Million in equity. He also tells the tale of the time a property he bought in Melbourne drew statewide attention, and how he proved everyone wrong with growth of $190,000. He also shares the secret behind his strategy and why it’s important to have both manufactured equity and capital growth in your portfolio. 

Timestamps:
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:

[00:13:50]  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.

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 continue our conversation with property Mogul Luke Moroney. He explains the ins and outs of his strategy, how he trusted his gut despite ignorant whispers to make $190,000. We discover how a flowing mindset can lead to cash flowing into your pocket and one of his secrets to success came from a daily Facebook live challenge.

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.

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? 

[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.

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.

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.

Coming up after the break we discuss the people that helped him get here, and the positive affirmation that gave him extra confidence. 

[00:19:22] at 19 years old, for someone to reflect on that change, and see that change in me, really gave me extra belief. 

The personal habits that keep his mindset sharp and focused 

[00:22:42] I'm into my fourth year of running. So it's like 1300, and something days in a row of running.

The harsh comment that made him want to succeed to prove everyone wrong. 

[00:26:45]  sat on a wage after leaving that job and going to another company at $100,000

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

 

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. 

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 

[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.

[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.

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?

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.

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