The following is taken from a personal interview with Geoff Doidge, one of the Reno Kings, and has been supplemented with text from a chapter of their book 'Real Property, Real People, Unreal Profits'.

I have been so inspired by Geoff's story that I have added this book to my book store and have a special offer for the month of September. More about this later.

At the end of his story you will find an e-mail link. If you would like Geoff to e-mail you a copy just send a blank e-mail to that address and he will reply and attach the chapter 'I must have failed my way to success' in PDF format.

Here's the story.

Geoff Doidge had no idea what he wanted to do when he left school. At his parent’s urging to get a safe job, he joined the public service as a draftsman and studied civil engineering at night. In the late 1960s he speculated heavily in oil and mining companies on the stock market and made thousands of dollars. He reckoned he was making more money than his boss, and told him so. (“Don’t do that. It doesn’t do anything for your career prospects.”) Geoff was always on the lookout for money-making ideas, but, as life would have it …

A market crash saw him lose the lot in a very short time. “I lost my shirt and almost my shorts. One moment I was a guru and the next a broken fool.” Barely 24 years old and he was in serious financial trouble, another way of saying “broke”.

He tried gambling on horses..no good
He tried gambling on dice games …no good
He tried the futures market…He's never seen money disappear so fast!
Buying and selling cars..Nope.
Nothing worked.

He failed his engineering exams, and to top it all off he was called up for National Service for the war in Vietnam (“the only lottery he ever won”).

But Geoff’s first property purchase was soon to come, a rental property he bought using two personal loans for the deposit.

Geoff had just got out of the army and was still looking for “get rich quick” schemes. He picked up a book in the library, "How I Turned $1000 into $5,000,000 from Real Estate in My Spare Time", by US author Bill Nickerson. It was a real eye-opener and he went out looking for property.

Property #1: Raising the deposit
A friend told him about a house for sale in a rundown inner Brisbane suburb. He offered $7000 and couldn’t believe it when they took it. He asked a bank for a loan to buy the house and was refused. He went to a building society and they also said no, but they would give him a $3000 unsecured loan for furniture. His credit union said no but would loan him $4000 for a car. He explained that he didn’t want furniture and a car. Then he had a think: “Hang on, $4k + $3k = … well maybe I do need them.” So that’s how he bought his first house. It was 1971. The house was rented at $30 per week, giving 21% return, and no money down............... But then there is the story of the 'bikie' tenants. There was a lesson to learn there......... (see the free Chapter of Geoff's book)

Property #2: A rental or a home?
A friend of Geoff's had bought a home in Sunnybank Hills, about 12 km from the Brisbane CBD, and he invited him over to have a look. Geoff was impressed and crazily said "I’d buy one here too", and he did. So there he was, stuck in the mortgage belt, a long way from all the fun, with no tenant, no tax deductions and no depreciation.

"That home taught me the massive difference between a home and an Investment Property (IP)". One home being “paid off” on a principal and interest (P&I) loan is harder than “controlling” the debt on four or five IPs. Most homebuyers are stunned to see someone on an average income with five IP's and they just don’t get it. They have never worked it out........ (also extracted from the free Chapter)

Mid life crisis

Fast forward to 42 years old. Geoff was passed over for a promotion. He thought, "Oh no, just like my Dad! I am going to be ‘old Doidgey’ in the corner". He became sad, then he got mad. No! I m not going to let this happen. (Experiences like these are critical turning points where you can either change your life or accept defeat.) He started reading books on money. He  went to every seminar and workshop. He bought tapes. He was on a quest.

The turning point

Geoff sat down and used a spreadsheet to do a budget ( I like this part because it backs up what I keep saying about the humble old budget). He couldn’t believe what he found. Based on his budget he should have been able to save $13,500 pa. "I was lucky to be able to save $2000pa…and if I saved it, I quickly spent it." I named this spreadsheet the Moneyfinder. (If you think Geoff included his 'wish-list' in his budget and then found he still had the money spare to save, you are sadly mistaken.) His budget included only the absolute essentials. Here was a man who was sick and tired of going nowhere and he was prepared to do whatever it took to achieve the result he wanted and there were no excuses and no blaming of everyone else for his predicament.

He was paid fortnightly so divided the $13,500 by 26 f/n =$519.

Each pay he had $519 paid into a special ‘not to be touched’ account. "I was paying myself first." It was a struggle. We had to adjust our lifestyle but like a miracle, at the end of 12 months there was $13,500 in the account.

A block of flats.

Geoff was going to pay that $13,500 off his mortgage but was excited to find a rundown block of flats. He did his sums and calculated that they would cost him $3000pa in negative cash flow. He realised he was saving $13,500pa so he could easily afford it by taking it from the savings he would have otherwise been accumulating. After long negotiations he bought the block did a quick renovation, raised the rents and guess what, the increase in rents paid all the outgoings. He was cash positive. He still had the full $13,500pa savings and a block of 6 flats!

The penny dropped.

He could do this again…and again. He did the same strategy on 2 houses in New Farm. Today those properties are worth over $2.5million and are part of a $15 million portfolio churning out over $550,000 rental income......... (More in the free chapter)

Looking back.

How did it all start? First complacency. In the early days an attitude of 'She’ll be right'. Then, trying to work his way to wealth. Trying 'Get Rich Quick’s' that don’t work. Coasting along for 20 years until his wake-up call of being passed over for a promotion. Then the realization that 'working for money is not working for me'. Then came the urgent need for change. The search began for answers. By finding the money for investing he bought his first block of flats. He added value by doing a renovation and made more money. That was it! He continued doing this and life is now very good.

Geoff's 7 steps to a new financial life.

1) Your mind: First the decision, that things must change and the realization that what you are doing now is not working.

2) The belief: that there is a better way.

3) By taking control: of your finances. Saving 10% and paying yourself first. (Geoff says my Simply Budgets is superior to his spreadsheet but however you do it, you MUST pay yourself first.)

4) Investing the savings: Either  in reducing non-deductible debt or investing in income producing assets.

5) Learn how to research and buy those assets: The right assets at the right price.

6) Learn how to add value to those assets to increase your equity: We have identified over 115 ways to add capital gain and cash flow says Geoff.

7) Use the increased equity  in those assets to do it all again: You must understand the intelligent use of TBM (The Banks Money) to apply financial leverage to build your portfolio

Geoff's Comments.

Speaking to David Wright it was strange how much alike we were. I was a Public Servant and he was a State Government teacher. We both discovered that taking control of our finances is the key. The real power came for me when I applied all my savings to investment in property and it has been unbelievably rewarding. The leverage on that first years savings has been outstanding. From the initial $13,500 saving to a $15+ million portfolio today. I absolutely recommend that if you don’t have the Simply Budgets software (or worse still, have a copy but haven’t used it)…buy it and start using it today - now. Make sure you budget to pay yourself first i.e. save some of your income automatically each pay.

Since finding the money for that first property investment, I realize the vital importance of research, negotiation, the right finance, buying well, adding value and extracting the equity.  These are covered at Geoff's Reno Kings workshops.

Geoff's parents always struggled for money.

What makes the difference between struggling and being set free? Like most people, Geoff's parents first financial burden was to buy a home, then a car, then to educate the kids …the usual battle of suburbia.

Because of his lack of education, his dad, a former champion sprinter, worked as a lowly paid public service clerk where he was constantly passed over for promotion. This was slowly killing him as less able but more qualified people were promoted over him and he would have to show them how to do the job.

You too can work all your life for money or you can start making money work for you. Unlike his father who had the best intentions and the same desires to succeed, Geoff relentlessly went after a solution with passion once he was stirred up enough to take action. Nothing would stop him. The money and time he spent educating himself, buying and listening to tapes, going to seminars and reading books were key differences that made him succeed where others failed.

The thing is that two people starting out on the journey of life will travel almost side by side for years and outwardly appear to be on the same path, but small differences in one will, over time, make so much difference later on, that you would think the two set off in opposite directions right from the start.

If you like the idea of saving money to become an investor, Geoff is right. You should use my Simply Budgets software as it will help you organise and plan your day-to-day budget so you can identify how to start saving like he did. Thousands of people swear by it. It works! Click Here to order a copy now.

To get your free chapter from the Reno King's book 'Real Property, Real People, Unreal Profits' describing Geoff's path to success simply send a blank email to geoffschapter@renos.com.au.

The book 'Real Property, Real People, Unreal Profits' is now available from the Simply Budgets Book Store for $24.95 plus postage. For the month of September I have two special offers.

1. I will include with all orders for Geoff's book, a free e-book titled the 'Secrets of Property Investment'

2. I have put together a special Book Pack bundle offer that includes Geoff's book, is excellent value, also includes the e-book mentioned above and will save you roughly $25 over purchasing the books separately (plus the savings on postage). I have carefully selected four books that I believe you will learn a great deal from. Mind you, you could break them up and use some as Christmas Gifts. (Don't read those ones).

Click here to find out more about the book and the bundle offer.