Building a multi-million dollar portfolio is not as hard as you might imagine. In fact, it can be achieved in as little as 10 to 15 years.

All it takes is a bit of planning combined with knowledge and support from others who are where you want to be. Here are 10 things you’ll need to understand before starting out on your quest for financial freedom:

1. Know that your choice of companions can impact your success. Be selective in who you discuss property investing with. Rather than share every little detail about your latest find with your Uncle Joe – who knows nothing about property investing – find a group of successful property investors. They’ll be an invaluable resource of property investing knowledge.
2. Define what you want. One behaviour that stands out between the rich and the poor is that the rich define what they want. They determine what it will take to achieve their goals and then methodically set out to do precisely that.
3. Create a set of goals. A key goal should include the acquisition of at least five to six investment properties. It’s at this point where you’ll achieve financial freedom. The statistics show that only a small percentage of individuals are able to achieve this goal. Some are stopped by a number of things, but the most common problem investors face is debt servicing. Learn how to manage your cash flow and debt servicing and you’ll eliminate a major stumbling block to your success.
4. Find a mentor you can work with. Do you need lots of feedback, or do you simply want to be pointed in the right direction? Choose a mentor who is an active investor with a multi-million dollar portfolio and who has a mentoring style that works best for you.
5. Do the reverse of what the crowd is doing. If the crowd is buying property, the market is probably either near or at the top of its cycle. You’ll pay top dollar if you buy at this time and it could take years to get any returns on your investment. When the market seems to be at its lowest, savvy investors will find good deals and ride the increase in property values when it comes.
6. Work out in your mind what you will – and won’t – give up. You don’t have to live like a pauper, but you’ve got to be a great budgeter. If you’re not, then learn to be one, because it’s a sure way to achieve your financial goals.
7. Sort out your finances. Need to refinance or pay off loans or credit card debt? What about cutting back on your expenses or selling items you no longer use or need to add to your stash? Clean up your credit (if necessary), establish a history of consistently saving and eliminate unnecessary expenditures to make yourself more appealing to a lender.
8. Educate yourself – attend seminars, read books, take an online course. Learn everything you can about property investing, only make sure that your source is well experienced and can provide evidence of results. Once you think you know everything you need to know – learn some more yet again. I’ve been investing for many years and I’m always learning something new.
9. Position yourself for wealth creation. Ideally, you want to already own property in a market before – or just as – growth is beginning to happen. You can do this by learning how to recognise a flat market and buying in that market.

Capital growth is what we’re after. It’s what creates our wealth.

Cash flow will give us the money we need to fund and grow our portfolios, but property values need to increase for real wealth creation to take place.

One saying to remember – “capital growth follows rental returns.”

Tip: Look for rental compression. This is an indication that capital growth is beginning to take off.

Now this means you’ll have to wait some time for growth to begin so you’ll need to have the capacity to wait for growth to happen.

Sue is the Head of Education and Director of Postive Real Estate (NZ) Ltd and also one of NZ's leading experts with a diverse knowledge of all aspects of property investing. Sue spent the last 15 + years immersed in the property market. Sue speaks at and runs many property events and has mentored many of New Zealand’s leading investors. Sue works with her investing clients to assist them to grow and enhance their portfolios, whilst keeping her eye on their end goal – financial freedom and choice. sue.irons@positiverealestate.co.nz