So last time we talked about, you know, the importance of other people's money, right. So, most people work or traded time for money, which is obviously limited to 1012 hours a day max that you can sell, perhaps on paper, you can let your money work for you. And that was 24 by seven, however, it's also limited, whatever amount it is that you might have. But if you leverage and allocate this money, it is more or less theoretically more limitation, obviously there is but at least you have a much better pool of money to access. So that's where we sort of left off and any questions there. And now the probably the one thing that most was on my mind after we finished the last section was when we're looking for other people's money.

Going to the bank is easy and obvious. So when we're trying to find someone with money, another investor or someone to co invest with or that sort of thing. How do you find them? I mean, okay, there's only so many friends and family we have that have money. Yeah. What then?

Yeah. All right. Great question. Yes, which is also a lot of other people's minds. And some people might not even be comfortable to ask their family for money. Even if it makes them money, and that's fine.

You don't have to ask them. You can ask strangers if you're more comfortable with that tool. So how to find them. I think one display tool Two ways. One is of course personal networking by you can go to networking events. That's a lot of in many cities, there's lots of networking events happening from meetup.com.

From other networking organizers, putting the something as structured SP nine, the business network International. If your member are familiar with that, then just talk to them. Right. So sometimes, you know, I often go to networking events myself and people ask, Hey, what do you do is telling me I teach people how to make money. That's interesting. Tell me more.

You just tell them and you know if they're interested in that, it's a numbers game. A lot of them might not believe you or not interested, but some will be and then you can set up a follow up meeting the stem thing, just Second one is obviously more these days is the police online while you can look for investor clubs or property events, events is a great like a no seminars, I mean in terms of not a single like trading course like mine here. I mean these kind of weekend events where they have to see four or five speakers coming in and, and selling their whatever they have to sell. But you don't necessarily have to buy what they sell. But these are exactly why the people interested in in that kind of thing in property or investing and just talk to them to the participants.

I mean, that's I think that's a because they're still like it is extremely high that you will find people who are interested in investing and you might be able to team up with Great, thank you. Okay. So as we said before on the always first place to go to is banks for lenders, a lender does not have to be a big bank that can be auto other companies that that loan money and please don't go to loan sharks but there's other you know, non banks that if property or housing loans as well, for example, big companies that have too much money, there's often a finance arm like for example, one of them that comes to mind is GE General Electric. He would not have thought the loaning money, but it will, it will save plenty of it and they need to somehow make a return on it.

Yes. Right. So could be non banks that are lenders to so when you talk to them Be prepared. So firstly, that means if your documentation ready because they will ask, obviously for the sales contract of the property that you're purchasing. They might ask you, most likely for either income, or taxation or both documentation. If you're an employee, your salary slip or if you're a businessman, or self employed for your business results, perhaps credit card statements and all that.

So, have them ready and don't try to search for it. Nowadays, this has become pretty efficient because property is such a mainstream thing, especially a buy to let, maybe not so an HMO, but a buy to let property loan. I recently saw even a advertising in Singapore somewhere in one bank, I can't recall which one were to set you know, in Said approval for your housing loan, which is pretty amazing, even if not one or two days, is probably all the take these days, because they know how to evaluate property is this daily business. So they only need to evaluate you. And I mean, that's basically done by computer program, as well as by the input, just how much you make, how much the property is worth, how much you can get out of it. And probably that insidious a fool might be today have run the computer program on you, before you even enter the banking branch we used to do in our bank as well for retail, not for property reading often but for retail customers.

And so when they walk in, we already decided before they walk in, but we give them a loan or not. So once they apply, we can instantly tell them Yes. So when you do talk to them, so you sort of need to take them on Tell them what they want to hear. Do not lie, tell them the truth. But don't tell them something they don't want to hear. So whatever they ask you, you answer the question.

But whatever they don't ask you don't tell them especially if it's something negative and take the boxes. For example, if you are an employee and have a salary slip, they like that kind of box because they receive it to be a stable income, even though technically job security is an illusion, but it makes sense to like it. Not one would be for example, if you take not on housing mortgage loan, but a short term loan or like a full renovation or something that for flip strategy, for example, then you tell them, I need this money for a short period of time a few months to buy materials and pay a contractor because after that, I will be selling my property for big profit. That's what I like to hear. How do they get their money back? That's what they're concerned about.

In many countries, including Singapore, UK, the United States, etc. They have credit bureaus that give credit ratings or scores, whatever name they attach to it to people. That basically tells a story how credit Warsi a person is in your opinion, and it's lighter, so fast, you know, in making decisions because they know already before you even walk in. How are these credit ratings or scores determined? Basically, it's good to have a some sort of debt already that you have always regularly paid off, could be a credit card. It could be a personal loan, or it could be a previous existing mortgage, housing loan, whatever it might be, that you always have paid off in time, that gives you positive points that you said was for, if ever, only once you miss your payment.

That's a huge, negative, you know, you're losing a lot of points there. So make sure you always do and the amount does not matter if it's a yes or no thing. So if, you know, for example, in a new country, that you don't have a history in yet, you could, for example, just get a credit card for $20 euros pounds on it, and pay them off. It's a yes or no, not the amount it matters. It's just whether you paid off in time or not. And those are things Banks look at obviously as well, when they determine your credit worthiness as well as your interest rate they will view the less risk you are the better interest and they're more willing to loan your money.

So can try to build up some positive credit history with small amounts just paying them off on a regular basis. So it depends on the country, obviously, that you invest in, how important that is or whether it exists at all. I think now in most sophisticated countries, it does maybe in a place like Myanmar, Vietnam, not otherwise it probably would be important to guess. So when when you're investing out of your home country, how does the end say so I live in Singapore? I have a credit history definitely in Singapore and definitely in Australia. If I wanted to invest in the UK and get a loan from a UK bank, how do they assess my credit score?

Well, if you don't have one, obviously they don't have They would probably initially assess you as a bit higher risk because they don't simply don't know yet. And so it might be slightly more difficult. Or just give it a little bit higher interest rate than somebody who has been, you know, proven, proven track record. That's why I said maybe it's good to try to get a quick credit card first. Yeah. Just pay off a few months 20 pounds for one UK or $20 in Australia.

Then you have a good history. Okay, good. Thank you. Thank you. All right. So, um, the next topic is it's a very long term strategy.

I would say it's smaller like a life strategy, not a, you know, something tactical you do now. That's the strategy by The technical things, this thread for us. This one here is what I'm talking about is more like a long, very long term plan that you might envisage in your investors or property journey. Now, to get properties and to build up a portfolio as we've been talking all this while obviously you need to have debt, but one fine day, you might want to reduce those when you get old and you know, and also the banks are less willing to give you loans if they're like 70 years old, or whatever. And then you might think of how to clear those debts. So that's what this topic is about how to clear up.

Let's say, coming back to our previous examples, you had hundred thousand dollars pounds yours, whatever. And instead of buying a house you bought for paying down 25 and leveraging 75 ss costs already before So Nice, nice, but one fine day. So you'll start off with 75% gearing, maybe 10 years later. That's the average history that every 10 years potentially property prices might double. So 10 years later, your houses would be was 200,000 each. And if you had taken out interest only mortgage, your debt is still 75.

If you have not refinanced, you could have increased it. Or if you ever paid our mortgage would have decreased it, it doesn't mean mental stress. The principle that I want to illustrate here is Daniel gearing obviously has gone down to 37.5% because he built up a nice equity portfolio here without me doing anything. Now 10 years later, they might have doubled again. So now there was 4000. And now you're 20 years older than me I started.

And depending on how old you were, I just started. I'm 50, basically now. So I will be 70 by then. And then I would probably like to, you know, clear my debts and just enjoy my cash flow net for cross without paying any mortgage. And all I have to do then is to sell one of the four houses that can clear all the debts in one goal and still have some money in the bank and I still have the other three houses for free, and now debt free and I can enjoy full cash flow, right. So that's something for the long term, you might want to consider eventually, that you do have to clear some debts and not keep them on forever and that they're here and give them to your ears.

Or, you know, give them the trouble of paying a call is bogus. My first principle is very simple. Of course, there's many different variations, how we can play it, it depends on the actual values of the property. How the market develops and how much more which you said about sending all these factors, obviously, but in the long run, you might consider clearing some debt and not keeping it on forever. Okay. Makes sense.

It's pretty straightforward. Now, making money is one thing. And that's what we've been talking all this while keeping money is a different story. So another subject as an investor is money management. How to mash your money once you have it. Right.

So A couple of thoughts for that. It's maybe not written in here. Some people are suspect for the watch Nevermind. They're very prone to that once they have it they immediately spend it. I know such people too I'm not one of them but I know such people. And if you remember the well cycle a few modules ago, right maybe a poor person makes 1000 spends 1000.

Maybe last person makes 5000 spent 8000. So despite him poor growth and therefore because they have to have a bigger card and neighbor, nicer TV, the neighbor and all this and the latest Lv handbag and I don't know what's so important is manage your money. That means monitor your cash flow regularly. So see, well, the cash flows that you're expecting him actually come in your rent basically, as well as the out, I have some templates available there for you, if you already looked at those, and you can use those just put in what you expect to get in every month and what you also expect to out. Now every month is still fine, let's say a electricity bill. Know how much rent you get how much electricity goes out.

But also what you need to take into consideration is that some payments don't occur monthly, but annually, let's say insurance premiums. And they don't come suddenly, you know, they're gonna come on the 15th of June or whatever it might be date. And so don't be surprised on 15th of June suddenly the insurance actually sends you a bill and demands $500 from you If you don't have it, then your problem arises. So manage your your cash flows not only in the past, but in the future by the next few months that are coming up, make sure that you always and always have sufficient liquidity available to meet all of your obligations, whatever it might be, even if there might be unexpected, so keep a little bit of money aside for unexpected dimensions or whatever might happen. You need to replace something in there. It has happened and it can happen and still happening all the time.

That people who are so called which are bankrupt. How can it be? How can it be rich and bankrupt at the same time? Well, I guess if they If they can't, if they didn't have the liquidity to pay for an obligation that's coming then that's definition of bankrupt executive if you have 10 properties was 5 million in total, then you are considered rich as your multi millionaire. However, if you put all your money into these properties and you can't pay your electricity bill and your phone bill and you know they come after you and you still can't pay it, maybe you don't have a system in place to manage your money or your have negative gearing Canyon, you can get a positive cash flow negative form, you can meet your obligations they will come after you and they can bankrupt you those that creditors that you have the electricity company, the phone company, wherever you're in money can declare bankruptcy even if the asset rich but if your cash for can be bankrupted.

That's why money management is also really really important topic that you ensure that you always have sufficient liquidity available to meet all your obligations to the upcoming in the future whether the expected or unexpected so how to do that is, as I mentioned how to use the templates just put in all the things at least expected once and key a little bit outside for unexpected ones as well. You can do what your mind does best. The What if thinking that's the minds favorite question what if? What if this What if that what if it is, and that's why a lot of people don't take action and feel afraid of things. In this case. Now we can make use of our brain liking this question.

You can ask yourself what if the value of my property goes down? Am I still okay? Or the bank come after me? What If I avoid, can I survive a few months before I find a new tenant? What if the interest rate goes up? Can I still pay my loan obligations or not?

Right? And then just prepare for these scenarios. If that happened, you are prepared, you know, you're okay. And then you will be okay. But if you're not and catches you by surprise them, I think for really bad surprise. Right.

So, leave a little bit of reserves for unexpect cost reserve in a bank is good, but money in the bank as investment is lousy investment. So this is not investment is just, you know, a liquidity fund that you can keep in the bank. Now, this investment, not a big amount, but just in case something comes unexpected. So that's very important. And also, we talked about at the beginning of this module, every what was what we said You must make money. I believe it must pay or make money, whether it's capital or income, whatever this strategy might be, and you're This is Warren Buffett's two rules for know them.

Rule number one, do not lose money. And rule number two refer to win number four. So the same thing here, I just borrowed it from him. He's obviously a fantastic investor. Yeah. So take care of your management, money management to not only have you know, incomings, but also the liquidity.

Okay, any questions there? No, that'll make sense. Okay. All right. So that basically concludes our finance module was a pretty long one, but finances obviously a very critical part of the whole equation. In Europe and one dead lot people have concerns this, but I've shown you how you can overcome these.

And basically by leveraging on other people's money and want to take care of mine doing that. So then if you apply these principles, you definitely have a great future as a property investor ahead of you. Great. Okay, it's done. Thank you very much for your attendance for this module. And we'll move on to an excellent Thank you.

Thanks so much.