{"id":14428,"date":"2017-10-26T01:00:04","date_gmt":"2017-10-25T14:00:04","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=14428"},"modified":"2017-10-26T01:00:04","modified_gmt":"2017-10-25T14:00:04","slug":"4-step-process-to-success-phillipe-brach","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/4-step-process-to-success-phillipe-brach\/","title":{"rendered":"4 step process to success \u2013 Phillipe Brach"},"content":{"rendered":"<p><strong>Philippe Brach<\/strong> is the author of a book called <em>Property Wealth in Any Market<\/em> and it details the process of property investing success.\u00a0 We talk to Phillipe about his four-step process.<br \/>\n<strong>Transcript:<\/strong><br \/>\n<strong>Kevin:<\/strong>\u00a0 I introduced a topic a couple of weeks ago on the show with our guest who is my next guest, Philippe Brach from Multifocus Properties &amp; Finance and also the author of the great book\u00a0<em>Property Wealth in Any Market<\/em>. We talked about that rule of 72.<br \/>\nHi, Philippe. How are you?<br \/>\n<strong>Philippe:<\/strong>\u00a0 I\u2019m good, Kevin. Thank you.<br \/>\n<strong>Kevin:<\/strong>\u00a0 I love that rule, teaching kids about compounding. So, go back and have a listen to that. We broadcast that a couple of weeks ago. Just go up into the search panel at Real Estate Talk, put in Philippe\u2019s name, and all of his interviews will come up.<br \/>\nPhilippe, I want to talk to you about the bones of your book. It\u2019s all about the process of property investing success, and you give us a four-step process. I know we can\u2019t cover it in a matter of minutes, but can you just give us a bit of an overview, please?<br \/>\n<strong>Philippe:<\/strong>\u00a0 Certainly. The four steps are fairly logical. In fact, the first step is more a phase, if you want. When people are going on the property investment journey, there are a certain number of things you do in a certain order.<br \/>\nThe very first thing you need to do is go into what we call the planning phase, which is the very first phase, which is where an investor or a would-be investor actually educates themselves to understand how it works.<br \/>\nEducation in terms of understanding the numbers is paramount because, to me, investing in property is not really about property; it\u2019s about making money and creating for wealth. For that, you need to understand how the numbers work. It\u2019s a numbers game.<br \/>\nThe planning phase is really the crucial one because it will dictate how you\u2019re going to invest, how far, how fast, etc., and also help you set up your targets.<br \/>\nThe second phase is what we call the accumulation phase. Once you understand how property works and you\u2019re comfortable with the numbers and you\u2019re ready, you have your deposit, you have your borrowing capacity sorted out, then you go into the accumulation phase where you actually execute the plan and the strategy, which is if your target is five or six properties, to start accumulating them.<br \/>\nThe speed at which you accumulate them will be sorted out in the planning stage, and so you start buying and accumulating these properties. Every time you buy one, you look at where you\u2019re going to get the deposit from \u2013 is it equity from the previous property, or is it savings, etc. \u2013 and you build up your portfolio.<br \/>\nThen you go into the third phase, once you\u2019ve achieved your goal, and that is the best phase of all. It\u2019s called the transition phase, and it\u2019s where you do absolutely nothing. You just stop buying, and you let capital growth do its magic and actually build up wealth for you.<br \/>\nDuring that phase, if you can, some investors start paying down their debt because they\u2019ve repaid their home loans so they have no more non-tax deductible debt, so they start repaying their investment then.<br \/>\nAnd then when you get to phase four, which is the drawdown phase, it\u2019s when you finally decide to retire and you need to start looking at the income stream for you once you\u2019ve retired.<br \/>\nThe drawdown phase can be in three parts. The first part is if you\u2019ve paid down your loans enough to create positive cash flow that is sufficient for your needs, then that\u2019s it; you just continue doing that. You might want, from time to time, to sell one property because until you sell a property, you can\u2019t cash in the equity you\u2019ve built up in there. As you grow older, you sell one property from time to time and use the cash to do whatever you want.<br \/>\nThe other option you can have is to sell the whole portfolio. So, go to the other extreme: sell the whole portfolio and put it in the bank. If you have a portfolio with about $2 million worth of equity, sell the whole lot, pay the tax man something, probably $500,000, and then put the rest in the bank, earn interest and just live off that.<br \/>\nThen the most probable way of drawing down your wealth is by doing a combination, a hybrid between the two methods I\u2019ve just highlighted, and that is to sell some of your properties to pay the debt off on some of the others until such time as you create enough income stream for you to live on, and then also that will still leave part of your portfolio exposed to capital growth.<br \/>\nThen the same thing: as you grow older, if you\u2019re left with three or four properties, at some point you decide to sell one because then you can cash something in and go on a massive cruise around the world or help your kids get into property.<br \/>\n<strong>Kevin:<\/strong>\u00a0 That last phase you talked about there, it would seem to me to be very appealing to be able to sell down some of it to reduce that debt but hold to some of those properties to enjoy that capital growth. Not that you\u2019d want to gear against it, but it\u2019s compounding the whole time, Philippe.<br \/>\n<strong>Philippe:<\/strong>\u00a0 It certainly is, and that\u2019s the secret of it, the compounding. If you start early enough and you build a substantial portfolio, then it\u2019s so much better and you have so many opportunities to do what you want. Having a bit of money is actually giving you choices, and it\u2019s great to be in that position.<br \/>\n<strong>Kevin:<\/strong>\u00a0 It makes a lot of sense, and there\u2019s a lot more information about that four-step process inside Philippe\u2019s book,\u00a0<em>Property Wealth in Any Market<\/em>. That\u2019s quite freely available at most book shops.<br \/>\nActually, I saw a post that you put up recently when you said it\u2019s nice to be in good company. I think your book was right beside one by Richard Branson.<br \/>\n<strong>Philippe:<\/strong>\u00a0 Yes, that\u2019s correct. It was a bit of a fluke because, obviously, my name starts with B-R-A and Branson\u2019s as well, so when people put it in alphabetical order on the shelf, invariably, I\u2019m next to him and always get that joke saying \u201cWho is this guy next to Philippe?\u201d<br \/>\n<strong>Kevin:<\/strong>\u00a0 Yes, that\u2019s right. Google it. You\u2019ll find it. It\u2019s written by Philippe Brach. It\u2019s called\u00a0<em>Property Wealth in Any Market<\/em>.<br \/>\nPhilippe, great talking to you, and thank you so much for your time.<br \/>\n<strong>Philippe:<\/strong>\u00a0 No problem. Thanks very much, Kevin.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Philippe Brach is the author of a book called Property Wealth in Any Market and it details the process of property investing success.\u00a0 We talk to Phillipe about his four-step process. Transcript: Kevin:\u00a0 I introduced a topic a couple of weeks ago on the show&#8230;<\/p>\n","protected":false},"author":176692471,"featured_media":14434,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32,33,10,11,13,35,25],"tags":[101],"class_list":["post-14428","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying-a-property-topic","category-case-studies-topic","category-kevin-turner-sponsored-channels","category-kevin-update","category-latest-story","category-property-development-topic","category-sponsored-channels","tag-podcast"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>4 step process to success \u2013 Phillipe Brach - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/4-step-process-to-success-phillipe-brach\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"4 step process to success \u2013 Phillipe Brach - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"Philippe Brach is the author of a book called Property Wealth in Any Market and it details the process of property investing success.\u00a0 We talk to Phillipe about his four-step process. 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