21 Sep Like-minded people band together – Matt Jones
We talk to Matt Jones who set up his own network group of investors that has now grown to thousands of like-minded people who share a passion for property. Hear his story.
Kevin: You’ve heard us talk in the show before about the opportunities that lay before property investors – the old saying that you’ll make your money out of investing in property when you buy, not necessarily when you sell.
My next guest is Matt Jones, who is from PropertyResourceShop.com, who also runs a number of networking groups of investors who get together to share ideas.
This has probably been one of the learnings as well from all of this, Matt, isn’t it? The opportunities that lie in front of us: you have to make sure that you actually secure the property at the right price.
Matt: Absolutely, Kevin. I find a lot of people jump in a little bit too early, or some don’t take action at all. I find one of the key things for investors is just to be surrounded by good people.
That comes in two parts: firstly, having the right team around you, a good accountant, mortgage broker, people who can advise you, but then also having the support, other investors around you who can really lift you up and help you with referrals and contacts and just learning from each other. That’s pretty much what we do at the networking groups.
Kevin: What was behind putting these together? Was this more for your own benefit, or did you see a need in the market?
Matt: It was very much kind of a selfish thing, I guess, in the beginning. When I started out in property, I did a mentorship that was based in Melbourne and I was in Brisbane at the time. So I just took the Brisbane contingency of that group. We just went out to dinner and had a chat, and I figured we could all learn off each other and leverage off each other.
Ten grew to 20, to 30, to 50, and 100. There are a couple thousand in there now. It has just grown and evolved organically. It was never supposed to be anything this big, but definitely, I’m finding there is this niche in the market where people want to be around other people and support each other. You don’t always have that in your own family or friends, those sort of networks, so it’s important to have those active investors who are doing the same thing as you or are on the same path around you.
Kevin: Have you seen the situation where someone may have come into your network group who had some fixed ideas on what they were going to do, they’re obviously on the wrong track, and through the momentum of the group, they were able to swing that around?
Matt: Yes. Most people who come in, it’s you don’t know what you don’t know. And there is such a broad skill range that comes to the group. Some people are brand-new who just read a book and want to start investing, others have done a couple of deals, and there’s a professional contingency, as well.
I find that people come in, they hear some of the content and talk to other everyday investors, and they realize how many options there are out there to make it work for themselves. It just brings confidence, I think, with each other, knowing that others are doing the same thing and just having a crack themselves – everyday investors still with a full-time job, wanting to maybe get out of the rat race, and just being able to implement some simple strategies they can take away from the night.
Kevin: One of the dynamic things I’ve seen with great people in any industry – and it does relate to the property industry, as well – is that they never stop learning, Matt. You’ve probably seen this in your own group where people have come along and you think probably their net worth is extremely high, they know it all anyway, but you never stop learning, do you?
Matt: Absolutely right, Kevin. I have a number of different mentors for different parts of my life, and it’s just something I accepted years ago. It’s cliché, but it’s about the journey. You’re always going to learn. You’re always going to have a bit of fear, something that you don’t know, and as long as you stay open to those learnings, you really do become more sophisticated in what you’re trying to do.
Kevin: We have a lot of listeners to this show who are probably first-time investors and are maybe going to take that first step. What would be your advice to them? What are the three key things you’d tell them to get started, Matt?
Matt: Three key things: I like to say to people who come on to the meetings, just take your time, three to six months, focusing on a few things and firstly, getting a good grip on the people around you, which I’ve already covered – having that support group and building that team because you can’t do it by yourself.
You need a good accountant, a good mortgage broker, a good solicitor, an account planner if you’re doing development, so getting that team in place. That takes some time, but you can leverage off the groups to do that.
The second thing is you can really get to know your area. I find there are deals in every suburb, and it’s more about knowing what’s going on in your area. I often invest close to home because it’s easier and just getting to know every property that’s on the market, everything that’s sold, what the market wants, and getting really clear on what that is so that you know it better than the agents so that when a deal comes along, you’re really aware of it.
The third thing would be education. A lot of people tend to abdicate, I suppose, or they don’t have the time to get in there. But really, the best way to become a good investor is to educate yourself.
There are many different levels you can go. It could be as simple as just going to the library and getting a book or buying a $30 book, or spending a bit of time and coming along to groups like mine – there are plenty of them over in Australia – or actually paying a bit of money and getting a mentor, someone to hold your hand along the way.
Either way, you need to be doing some sort of ongoing education to continue to grow as an investor.
Kevin: Very good words of advice, Matt. It’s been great talking to you. I love your work, and congratulations on what you’re doing with your network groups as well.
If you want to contact Matt and find out a little bit more: Matt Jones, you’ll find him at PropertyResourceShop.com and his e-mail address is firstname.lastname@example.org.
Matt, thank you very much for your time.
Matt: My pleasure, Kevin. Great to be here.