Another investing case study

In this case study, busy business owners Matt Brickwood and Danielle Connelly share how they kickstarted their property investing journey with deals offering 11-20% pa net returns without needing to source the deals themselves.

Who are the clients?

Matt and Dani are a husband/wife team that have built a successful software development and web design business.

Before joining Freedom Warrior, their focus was on investing in lifestyle activities, with limited investments in shares.

What challenges did they have?

Both Matt and Dani were interested in wealth and investing but had been unhappy with the returns they could see in the Australian property market for typical residential real estate. They disliked the idea of assets that might offer capital growth but were unlikely to deliver meaningful cash-flow until decades down the track.

They had invested in some shares, recognised the exposure to volatility in these markets, and wanted to be diversified into other assets. Also, Matt and Dani were conscious of the current economic turbulence and uncertainty and were concerned about growing their wealth during a looming recession.

Because they had begun their investing journey later in life, they sought holistic wealth guidance on selecting killer investments and were anxious to make up for the lost time. They knew that this was the right time to get support to fast-track their results.

They were in a situation where their business results were starting to catapult, and they had limited time and skills to go out looking for the ‘right’ deals.

Matt and Dani did not feel they could rely on a good business sale in 5 years, so they were concerned about being trapped in the business if they did not take action.

What Did Freedom Warrior Do for them?

The starting point was to identify their goals. To replace their living expenses with income from their investments within seven years was the primary goal and to do it in a way where the investing itself was not a distraction from their primary business. This would allow them to maintain their lifestyle and take sabbaticals from the business if they wanted to.

The starting point was to build out a detailed Investment Acceleration Strategy. We documented their goals, the structures they would need, the estimated capital they would inject over time and the specific strategies that might be suitable.

Once this was clear, we mapped out some forecasts for how different courses of action would impact results over time. This made it easy to identify the investments that aligned with their plan and which ones did not.

By helping them to understand the potential outcomes and opportunity costs of different decisions, we set out a plan to reduce their current lifestyle burn rate and siphon business profits to maximise the speed to goal.

Their preference was to lean towards more hands-off investments, which would offer the highest returns (11-20% NET pa). In particular, they have been most attracted to the small private fund model, which allows them to diversify across different investment types, geographies and invest with many different teams and individuals.

They are on track to producing a high 6-figure income from their new investments and are excited about the prospect of never having to go looking for deals. Instead, they can proactively plan where to put their capital months before it arrives.

Most excitingly, the plan they have in place puts them in the position of being able to stop working within 5-7 years and with no pressure to sell the business for a high price.

Meanwhile, their investments will continue to thrive during economic turbulence and do not require a rising market to deliver the projected returns.

Because of access to the buffet of premium deal flow, their plan will shave approximately 25 years off their timeline to reach their financial goals.

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