Custodian Magazine - 21 years of Property Investing

CUSTODIAN E N G A G E

•

STEPS TO WEALTH

E D U C A T E

•

M O T I V A T E

21 YEARS SPECIAL EDITION - NOVEMBER 2019

1

I recognise life can be a struggle. I embrace the struggle. Without struggle there is no progress. Like a tree, the strong winds cause the roots to go deeper.

2 QUESTIONS

WE SHOULD ALL ASK

Step 7 of the 7 Steps to wealth is ‘Be all you can be.’ For me, like Custodian, this is a way of life. The genesis of this step is the question I ask myself every day: “Have I reached my full potential?”

The answer is perpetually an emphatic ‘No.’ Therefore, today and every day, I must take one step forward. That sums up our philosophy and culture.

I recognise life can be a struggle. I embrace the struggle. If there is no struggle, there is no progress.

I’ve posed this question of potential to clients and thousands of others, aged anywhere between 8 and 94 years old. I’ve only ever had two answers; ‘No’ and ‘Not even close.’ It baffles me, then, to see so many people literally stuck or standing still.

If you’re standing still, you’re practically going backwards.

The second question I ask myself is “What is the one truth that I know that the rest of the world doesn’t — or doesn’t recognise?”

The answer is Step 1: Buy land for growth.

The truth very few know and even fewer practise is that land appreciates whilst buildings depreciate.

In 7 Steps I speak about buying my first investment property in 1984 and paying $16 per m² for my land. Our first clients paid $66 per m² for their land in 1998.

In 2019 that same land is worth a staggering $750 per m². That’s a growth rate of 45 times in 35 years and 11 times in 21 years.

There is simply no other asset class in Australia that has grown by that much.

And yet— most property investors waste their money on apartments.

Even more impressive than these growth 2

Be All You Can Be

figures is that our clients bought their original properties using just a $20,000 deposit, paying a mere $180,000 for both house and land. Today those properties rent for $23,400 annually, and grew in value by roughly $50,000 last year alone. That’s an astounding return by any measure, and it has our clients laughing all the way to the bank.

More to the point, though, our clients have used their original investment properties to duplicate, many with enviable portfolios of more than 10 investment properties. Even more relevant, these clients can each own more than 5,000m² of land — in high growth areas that are still appreciating better than any other asset class.

We have put together a sample of what we have delivered over the past 21 years on page 20; it shows that if you had started with us in 1998 and bought 1 property every year you would have net assets of $5.9 million from an investment of less than $100,000. Furthermore you would be cashflow positive $225,000 per annum with a land bank of 15,845m², growing by more than $1 million per annum.

There are others, mostly fly-by-night companies, that claim to do what we do; it’s only when you ask them to produce their numbers that you realise they actually don’t.

This is why people continue to place their trust in me and my team, and how we continue to live up to their expectations.

This is what so many of those companies lack, and the unique point that means a world of difference — it also means we’ve stuck around when so many others have folded.

I’m so proud to introduce you to over 20 of our fantastic clients in this magazine, some who have been with us since the beginning and some just starting out.

Collectively they own an average of more than six properties - putting them in the top 1% of Australians.

It’s a different way of thinking that creates successful habits. It starts with them genuinely wanting to do better, wanting to reach their true potential, wanting to be an example and an inspiration to their kids and family — wanting to become Custodians of wealth and knowledge.

Finally, in reading our magazine you will quickly see that we are a legacy based organisation. We create a legacy in how we educate, how we invest and most importantly how we look forward to identify how we can be all we can be.

We introduce you to more than 20 clients who own 138 investment properties, putting them in the top 1% of property investors in Australia.

Start with the most important question: how much real estate does the CEO own?

I proudly own circa 14,000,000m² of real estate, the majority, for more than 20 years. I practice what I preach, and I have the results to demonstrate that it works.

3

CUSTODIAN FROM THE EDITOR

MARIE HALLETT

I

grew up in the south of France, where traditions are engraved in every child’s upbringing. Spending time with your parents and grandparents is key to your education and growing up with the right values in life. Why you are here, What your ancestors did before you and How it matters today and for your future - the lessons that the more experienced will pass onto you are going to pave the way.

When you look at a castle or a church you imagine the battles and hardship behind their walls and how they still stand today after centuries; the same goes for people.

What is your Why? What will you do to achieve it? How will you go about it? Who will you you trust to guide you along the way?

My Why is helping raise strong and happy girls; I will instill the values into my 9-year old daughter that will help her find her own voice and strength; the community we build around us contributes a great deal, where family is not just mum and dad; it includes everyone surrounding you as you grow up: cousins, aunties (and best friends), neighbours picking you up after school, the gymnastics teacher from Russian decent not afraid to be strict with the kids to toughen them up – All will affect her in some way and we will be there to guide her further. I want her to spend more time with people, less with devices!

The community that John created is made of real people; one that guides Australians from all walks of life in achieving their very best in life, just by following the 7 Steps Strategy.

The first day John took me to

4

Toogoolawa school, I truly understood what he was really trying to achieve. This magazine is a tribute to 21 years of educating young boys and Australian families alike, to be the best version of themselves and aspire to something bigger.

STEP 1

We don’t hesitate because things are difficult; they are difficult because we hesitate.

V. HUGO What John has done with the 7 Steps Strategy is offering a way to think differently and take control of your future. This is his Why. John’s legacy is based on education and an open mind; it defies the odds.

While the strategy is all based on numbers and has worked for many, only those who dare to start can reach their potential.

“We don’t hesitate because things are difficult, they are difficult because we hesitate.” (V. Hugo) This magazine is a tool to engage, educate and motivate you to get started or keep going.

COVER Custodian Celebrating 21 years of education CEO & PUBLISHER John Fitzgerald JLF CORPORATION PO Box 2256, Nerang MDC QLD 4211 T: (07) 5527 4999 EDITOR Marie Hallett DESIGNER Svetlana Musson CONTRIBUTORS John Fitzgerald, Alex Fitzgerald, James Fitzgerald Marie Hallett, Georgia Logan, All Clients featured in this magazine, George, Bernie and Cory from Investloan, Dora McBain, Ron & Sue Farmer, Research team: Nathan Bowtell & Kirsty Melcheck PRODUCTION The Printing Hub Australia wide www.theprintinghub.com.au DISCLAIMER: Information contained in the Custodian Magazine is the opinion expressed by its contributors.

Readers are encouraged to conduct their own research.

Business decisions should be taken on detailed, case-specific advice. JLF corporation does not take responsibility for action taken by any person or organisation relating to this matter.

HEAD OFFICE CAMPUS - ESTABLISHED 1995

Our HQ sits on a 30,000m2 campus. John bought the land in 1995 for $8 per m2.

Today this land alone is worth $700 per m2.

BUY LAND FOR COMPOUND GROWTH

Contents A word from John

Page 2

The numbers that speak

Page 22

Letter from the editor

Page 4

Our clients

Page 24

Table of contents

Page 5

Social Pages - Client events

Page 40

Why 3 Billionaires endorse 7 Steps

Page 6

Collaborations with Real Estate agents

Page 48

Why do we educate?

Page 8

Behind the scenes - How we do it

Page 50

Our educational resources

Page 10

Q&A with our Investloan team

Page 56

Why Toogoolawa Schools?

Page 12

Our people Page 58

Toogoolawa - the story

Page 14

First Home Buyers #AskCory

Page 62

In the life of a boy

Page 16

The Fitzys - A Family Affair

Page 64

Wa - the big man with a big heart

Page 17

Notes pages Page 68

What makes us remarkable

Page 18

Contact us Page 71

Momentum Page 20 5

WHY 3 Billionaires ENDORSE 7 STEPS

John Fitzgerald is a vocal property investment coach, wealth building mentor and philanthropist. His personal philosophy revolves around the ideal ‘be all you can be’ (Step 7 of 7 Steps to Wealth). We sat down with John to talk about mentoring and his relationships with the property billionaires who have backed his message.

6

W

hen asked about his advice to those seeking a mentor, his reply is swift and decisive: “When the student is ready, the master will appear.”

This advice isn’t for people who are looking for someone to idolise, but people who are looking for a guide, someone to learn from.

He continues: “I get so many people asking me to mentor them, but the truth is, mentors choose their students, and they will be walking the same path. Not thinking about walking the same path, not researching the same path, but actually walking the same path.” True enough, you can’t possibly hope to teach someone how to drive if they’ve never sat in a car. Property investment is a complicated business, but to John it’s more than a means of building wealth: it’s a hobby, and a passion.

John tells young people and clients alike in every single phone call “when you lock in your first property, that’s when you and I start working together.”

But before he was someone others looked up to, John was learning from his mentors.

He credits much of his knowledge and positive mentality to the Jewish property moguls that gave him his start in property.

He worked with them on a daily basis, eventually partnering with them; they later seed funded his first multi-million dollar acquisition.

“The reason why I credit them is that, yes, we were partners, but what you learn off mentors is a way of thinking, and their habits.

And that’s pretty much what I teach.

Outside of my direct mentors, I continue to have good relationships with many of

“Best book...Should be taught in schools” NEV PASK #91 $996 million Financial Review Rich List 2017

THE

Why

“Every Australian must read this book” BOB ELL #44 $1.84 billion Financial Review Rich List 2019

“Compelling Insights” MAHA SINNATHAMBY #72 $1.27 billion Financial Review Rich List 2019

the other real estate moguls and tycoons, including the three billionaires that endorsed my book.”

One of John’s mentors is Maha Sinnathamby, one of Australia’s most brilliant entrepreneurs and the brains behind the largest master-planned community in Australia: Springfield. Though Springfield was not always the success story it is now. “…He had a vision that this was going to become a private city, because it was only 29 kilometres from the Brisbane CBD. No one believed him, and everyone mocked him for years—but he and his partner, Bob Sharpless, just kept on persisting, and eventually got the government to extend the centennial highway down and then the rail. Slowly but surely his persistence led to what is now the biggest and only private city in Australia, where the median house price, in some parts, is double the median house price of Brisbane.” Greater Springfield is what it is because of Maha’s persistence and positive outlook. It’s a story John tells to encourage others to set ‘audacious goals,’ and an example of the calibre of business people that see the value in John’s strategy.

In his endorsement of the 7 Steps to

Wealth book, esteemed ‘property baron’ Nev Pask spoke of how his relationship with John spanned more than 25 years, but it began, like a lot of business-forged friendships, with a transaction.

“I had a keen appetite for numbers, discipline, and also a real love of real estate.

And when I say love of real estate, I mean love of the land and the opportunity, because a true real estate person will look at the land and say, ‘Where will this be in 20, 30, 40 years?’ This is the magic of real estate.

I remember him saying to me at the time, “How long have you been doing this, son?”

I said, you know, four years. And he said, “Well, when you’ve been owning property for five years, then you’ve got it in your blood.

And that’s when we’ll be able to start doing business together.” Sure enough, I did my first transaction with him when I was 2223.” John purchased a block of land with a 150-lot subdivision on it. Before Nev’s death in February of 2018 the two had completed more than 100 million dollars’ worth of real estate transactions. “But more importantly, we developed a great friendship.”

While Nev saw mentoring as a chance to give back, John has been very open about his tough childhood and wanting to improve the

lives of troubled boys that the mainstream schooling system has overlooked. “I was challenged by my mentor to learn and practice humility when I was 25 years old, and this was a bit of a rude awakening for me. A lot of people give money to charity.

What I have found to be the most rewarding is giving my time because what we really need is practicing humility. It is probably the most underrated wellness activity— and yet a true way to get us out of our head, where we can feel the benefits of compassion and are more understanding.”

On his deathbed, one of the last things Nev Pask said to his son was ‘I wish I had done more.’ For John, this confession is almost haunting —more than just a reminder to ‘live your life to the fullest,’ it’s a reminder to enrich other’s lives, too. “Here’s a guy who got to 87 years of age, looked back and did more than anyone I know; but somehow recognised ‘Wait on, I could have done more whilst I had the chance.’ And that rings so true. I think it’s the unquestionable lesson of the whole universe: that the universe continually expands, and so should we.

For us to be in sync with the universe that’s what we have to do. We have to continue to expand, and grow ourselves.”

7

WHY

DO WE EDUCATE?

Most Australian property investors do the exact opposite of what we teach; they simply haven’t got a clue - they buy apartments, have inefficient cashflow structuring and 90% only ever buy one or two properties. Most don’t even know the difference between property and real estate.

W

hen you hear John speak at a seminar or read his books, you can see that he is a passionate educator. John has been running Toogoolawa Schools Ltd for 30 years and coaching everyday Australians to build extraordinary wealth for the past 21 years. The instinct to pass on the knowledge he has acquired runs deep. Author of several influential investment books such as ‘Signposts to Success,’ ‘Accelerated Wealth,’ ‘Success from Scratch’ and the acclaimed ‘7 Steps to Wealth,’ he decided to go further in order to educate the public. For him, inspiring others means being an example for others to learn from, and it’s reflected in his own portfolio.

Right alongside the people he coaches, John is an avid investor in his own right, having bought, developed, and sold more than 11,000 properties. This statistic alone places him within an elite group of the top investors and real estate experts in Australia.

Under his leadership, Custodian has successfully completed 320 developments, and our client portfolio is valued at over $4 billion.

Instead of limiting himself to just teaching clients, he also visits Toogoolawa every Monday at 9am to lend assistance to the school.

We asked him some personal questions about how he has found himself in this role of educator, and his answers reveal a different side to him.

8

THE

Why Why have you chosen to be an educator?

I believe we are all educators. No matter what we do, we are teachers. Some teachers complain, some teachers explain, and some teachers inspire. I choose to inspire – to be an example for others to learn from.

When did you start consciously teaching others and why?

I started when I was 25 years old. My mentor at the time — and mentors are vital to our personal development — told me I had to learn and practice humility. In a roundabout way he was telling me that, as successful as I thought I was, I was a selfish, self-centred person who had no chance of happiness until I learnt to give.

What do you do when someone says that to your face?

Obviously, I had to take a hard look at myself. I trusted my mentor’s guidance because he made me who I was financially, so I had to be open to change. When I reflected on my own upbringing, I recognised that I wanted to work with youth at risk. That has grown into Toogoolawa Schools, one of the first special assistance institutions for boys who have been excluded from mainstream education facilities. We currently have 106 boys aged 8 to 15 enrolled in our schools.

What is it that Toogoolawa is doing differently to educate these boys?

Toogoolawa is an Aboriginal word that means a place in the heart. We start with the heart, whereas mainstream schools start with the head. In a mainstream school, the classroom teacher will say ‘I’m the teacher, you need to listen to me.’ — That doesn’t work with our kids. First, we need to make them feel that they belong.

How did you go from being featured on Australian Story for being the youngest person to be licensed as a real estate agent in Australia to writing 7 Steps and coaching Australians to build wealth?

I had made my millions in real estate. I was mentored by the best, they became billionaires. I realised Australians have no idea when it comes to building wealth.

In fact, they almost do the opposite to what I and the most successful people do.

Could you describe what you mean when you say Australians do the opposite of building wealth?

Here are two fundamental examples: 1. Most property investors don’t know the difference between real estate and property.

2. The majority of property investors think the best way to make money is to buy and sell.

We tell ourselves too many stories that just aren’t true.

Everything is a number and should be precise. Your health, wealth, education, life span, fitness, diet — all are quantifiable in numbers.

Having clients who started the journey with you more than 20 years ago, how would you summarise your teachings?

Three words: numbers, strategy, repetition.

Why are those three words so important to you?

There is only truth in numbers.

We tell ourselves too many stories that just aren’t true. Everything is a number and should be precise. Your health, wealth, education, life span, fitness, diet — all are quantifiable in numbers.

9

Educator,

Motivational Speaker and Wealth Builder

35 years experience

How much are you worth today?

Where do you want to be when you retire? How can you get there?

It all comes down to strategy. Find a proven strategy to build wealth that has been road tested by thousands of everyday Australians over the past 20 years. Ultimately, if you’re aiming to turn $50,000 or $100,000 into $2 million with guaranteed success you need a strategy that gives you compound growth.

Repetition is practising that compound growth, and that requires growth-focused assets plus cashflow, supported by leverage and tax deductions. This is what enables our clients to duplicate their investment properties until they have portfolios worth millions of dollars.

Why do you swear by property?

It’s not property, but real estate.

Here’s the first truth in numbers: land appreciates, buildings depreciate.

Residential land has outperformed all other asset classes time and time again, with nowhere near the volatility of the stock market. There’s nothing else like it.

With clients who started with you over 20 years ago, what have you learned?

Many of our clients have become great friends. We catch up when they are on the Gold Coast or when I’m visiting interstate.

What I’ve learned most is that success is three dimensional – heart, head and hands – which I describe as the why, what and how. The most successful clients, who have over 10 properties, are givers. They come from 10

a place of abundance, driven by wanting to improve themselves and life for their families as well as contributing beyond their household. They stay on track and buy property whenever they have borrowing capacity. They know we have the highest population growth in history, lowest interest rates and that we can’t make any more land so for them it’s a no brainer.

Is there anyone you can’t coach?

Yes, absolutely. It’s the same at Toogoolawa School, you can’t help someone who doesn’t want help. To want help means you want to change, you want to go forward from where you are today. It’s the same with wealth building. I can’t help anyone who is lazy or procrastinates and doesn’t want to change, someone who doesn’t have the heart to practice repetition.

I can’t coach someone who is driven by scarcity and fear.

How do you continue to grow?

We should never stop learning. I’m a lifelong student. Two of the three billionaires who endorsed 7 Steps to Wealth continue to give me guidance.

At Toogoolawa Schools, Dr Ron Farmer and his wife Suwanti are great teachers for me. Yoga is my passion.

I practise Kriya Yoga and have an amazing teacher and mentor in India, whom I spend time with every year.

My kids are also great teachers and mentors for me. They always point you to ‘Your Heart over your Head,’ — which is the greatest lesson. If we are always learning, then everyone becomes our teacher and every day we learn something.

Educational modules: Pit Stop Intuition Mentors Signposts Letting go Inspiration Core values Heart Goals Compassion Setting goals Go for growth Affirming goals Creative thinking 7 Steps to Wealth Managing your life Accelerated wealth Managing your time Building an ‘A’ Team Reinventing yourself The Success Triangle Visualising your goals Power of visualisation Optimise your income Workshop of the mind Putting something back

12 Modules to get you on track for success.

IF YOU WANT TO KNOW THE FUTURE, LOOK AT THE PAST. Whenever I reflect on my 30+ years in property and analyse the things I’ve done successfully and other things that I could have done better, I always recognise that momentum was a key factor.

Maintaining that forward rhythm despite change requires lots of focus and commitment. It would be like sailing a boat in rough seas where you can’t visualise the horizon, and you’re being pushed from side to side, but you know how important it is to maintain that momentum and focus on the compass bearing.

As Charles Darwin said, it’s not so much the survival of the fittest that will prevail, but more so those that can adapt and change. That is so true of the changing market and changing financial landscape.

That is where the development of successful habits and practicing them daily comes into play. After all, success is just repetition, whatever your definition of success may be. It is the goals that we set ourselves from the get go that keep us on track.

Goal-setting is such an important part of my life. I started setting goals when I was fifteen, and I have been doing it ever since.

Goals are important because they give us focus and direction. They define where we’re heading.

If we have goals, then we have the freedom to let go of other things that can be distracting and focus on what we really want to achieve in our lives.

This program is taught online and includes one-on-one with John Fitzgerald. Request information at contact@7stepsstrategy.com

Module 1: Foundations for success Module 2: Success is your business Module 3: Starting Point Module 4: Financing Basics Module 5: Property I: A Passive Portfolio Module 6: Property II: An Active Portfolio Module 7: Property III: An Active Portfolio Module 8: Strategies to suit you Module 9: More Creative Financing Module 10: Contracts and Options Module 11: Success is your business III Module 12: Here’s an Idea: $1 Million in a Year - From Scratch

11

A PLACE IN THE HEART

Toogoolawa Toogoolawa School specifically caters for boys aged 8-15 who are disengaged from mainstream schooling. The Toogoolawa model is unique to the school and is designed to revolve around the five universal human values of truth, love, peace, right conduct and non-violence.

T

oogoolawa is the pioneering special assistance school that caters for boys aged 8-15 who are disengaged from the mainstream system. The school’s model is unique and designed to revolve around the five universal human values of truth, love, peace, right conduct and non-violence.

30 years ago, Ron and Suwanti Farmer helped John establish this groundbreaking project, listening to his goals and shouldering the responsibility of making it happen. We talk about how it began, how it has evolved and our collective dreams for the future of the school.

THE BEGINNING Ron and Suwanti are esteemed psychologists who had been involved in human values education for many years.

One evening in 1987, Ron answered a phone call. He remembers it well: “John introduced himself and said he had a lot of money and wanted to help street kids. We talked for a while and arranged to meet on the Gold Coast the following week. I said to Suwanti: ‘That young man is either mad or very wise.’ When we 12

met, we realised he was very wise. He felt a duty to use what he could to help society.

We felt like kindred spirits.”

John recalls: “At that meeting I asked them to help turn my dream into reality.

I said I’d provide the money and wouldn’t interfere – I wasn’t even going to question how they were going to spend the money.

I knew I could trust them, and they have more than lived up to my expectations since. “

The Farmers took a leap of faith, with Suwanti even resigning from her job; they spent a year researching the different charities and government agencies that helped kids at risk.

They concluded that the best way to help kids was before they lived on the streets – the children who move from one foster home to another, who are ‘too difficult’ to deal with.

Initially, Toogoolawa was set up as a residential home in Sydney. After two years, when the lease on the home was about to end, John asked the Farmers to relocate the home to Queensland, so that he could be more involved. They set up another home in Cleveland, but they quickly realised that the children needed more to get a proper education, so they decided on a change of direction and set up a school based on the five human values.

“We started the school in a cow paddock in an old banana shed with six children,” Ron fondly recalls. “We stumbled along, feeling our way. It was very challenging working with these children. Gerry Maloney, our principal for the last 13+ years, was the game changer.

He came to the school with a strong spiritual foundation and a deep sense of purpose on how to help the kids. He instinctively knew how to bring the human values into a school setting, in a very powerful way. We already had some rituals and procedures in place, but Gerry brought it all together. He had a growing vision of how Toogoolawa could evolve.”

THE

Why FOUNDED

CHARITY

1989 1991 Gerry had great experience as a principal, and brought much more structure into how the values underpin the way the school functions.”

TOOGOOLAWA’S EVOLUTION

FIRST SCHOOL

1997

In the past 20 years more than 1,000 students have benefited from Toogoolawa’s innovative education program. About one third of the boys have successfully integrated back into mainstream schooling, others enter traineeships or TAFE courses. In all, around 85% of the students who graduate will do so to engage in work or study.

When Gerry arrived in 2007, there were three Toogoolawa Schools – one each in Queensland, New South Wales and Victoria. The model was more like a family group – up to 15 children in a ‘class’ with a high ratio of teachers.

However, even in Victoria, where there were six children to three teachers, the teachers still found it challenging. We came to the decision to close the two smaller schools, which had 20 students each, to create one big school on the Gold Coast, using a different financial model, re-establishing Toogoolawa as an independent special assistance school with recurring government funding.

“We needed to become financially independent, so we weren’t relying so heavily on John and once we got the model right, we could duplicate that model and open more schools,” says Ron. “Gerry took us through that very difficult transition. He also experimented with the mix of teachers and youth workers and found that not only are the youth workers amazing at dealing with the students’ behaviour — because they are young and have a different mindset”

13

Over the years, Gerry has refined the balance between teachers and youth workers which has had an immeasurable impact on how the school functions.

In collaboration with the teachers, he experimented with ways to integrate human values into the curriculum, policy and everyday functioning of the school. We’ve always had mindfulness practice in the morning, but Gerry has a presence about him that helped build a kind of culture so that when a new student arrives, they enter into a culture where the children can sit silently for 20-30 minutes – and these are wild kids! The new kid sees others sitting quietly so he will likely do the same ultimately.

Through a constant, gentle experimentation Gerry has developed a unique way of handling more than a hundred boys who are not welcome in mainstream schools. We now have a special team of youth workers who are exceptional at dealing with boys 14

who have ‘gone off the rails.’ We also have ‘The Shed’, which is a unique teaching space that’s been set up for students who have been so traumatised by school that they simply can’t sit in anything that looks like a traditional classroom.

Over time they learn to trust the staff, and eventually the system, so they can transition back into a normal classroom setting.

“What impresses us the most about the school as it has evolved, is the power of love. Love brings about extraordinary change in the boys, but that love has to be practiced by the teachers and youth workers. That’s what is most impressive. They are committed to an ongoing self-transformation to embody the values. To succeed, they must be more loving and peaceful than anyone the boys have ever met. The boys then learn to trust and connect to those qualities in themselves.” Ron reflects.

MEMORIES When Ron thinks of one of his favourite memories, he can’t help but laugh. “When the school was still small, I would tell the ‘moral story’ each week. The first time I tried, one by one, the boys got up and left the room. I was furious, and thought they were ungrateful — but after self-reflection I realised the boys were telling me I didn’t know how to relate to them. I had to go through a big change to learn a simple thing like how to tell a story.”

One of the things Suwanti is most proud of is Quiet Time. She explains: “Monday morning Quiet Time has always been special to us.

To hear them say, ‘we start the day with love, we fill the day with love, and we end the day with love. This is the way we live’ is very moving.

Before they came to the school, love was almost a dirty word.”

THE

Why “Over time they learn to trust the staff, and eventually the system, and then they can transition back into a normal setting.”

CLOCKWISE: An aerial view of Toogalawa’s Gold Coast campus - Nov 2019. Three students smiling and sitting proud in uniform. Two boys with one of our invaluable staff. A group of students performing for staff and classmates.

FUTURE ASPIRATIONS For the Farmers, you can tell that Toogoolawa is a passion project that has become their lives’ work, and to be a part of it is awe-inspiring.

Ron adds, “For Suwanti and I, the biggest impact the school has had on us is the focus on learning and understanding the five human values, because one of the foundation principles of human values education is for teachers to be role models, to be the catalyst for these values, otherwise nothing happens. That means, as directors, we have to be role models for the teachers. You might think that we wouldn’t need to keep working at this after all these years, but the students have taught me how little I know about myself.

Because these boys are so troubled, they are very honest, even brutal at times. The children teach us to look at ourselves.”

Ron, Suwanti and I aim to eventually have 50 Toogoolawa schools across Australia, anywhere there are children who aren’t thriving in school like they should be. One is currently being set up in Perth and there are plans for schools in Sydney and Mooloolaba on the Sunshine Coast. Ron says, “While we won’t reach 50 in Suwanti’s and my lifetime, we hope that the foundation is there for this to happen.”

Recently, Ron and Suwanti attended a conference in Argentina for the Congress of Human Values in South America. The reputation of Toogoolawa’s model for bringing human values into the education system is so well respected that they have been asked to help establish 100 schools like Toogoolawa across South America. This is incredible. Ron smiles, “If we want to know how Toogoolawa is functioning, we only have to look at its reputation, which is now worldwide.”

15

IN THE LIFE OF...

K

ai Collins is a natural in front of the camera, calm even as he recounts what life was like for him before coming here.

Bullied for having autism, ADHD and ASD, he admits to retaliating more times than he should have. This 8th grade kid solemnly reflects on the kind of person he used to be with a grace and sincerity adults I know don’t possess a fraction of.

On his final warning at his last school, he jumped before he was pushed, so to speak - and came to Toogoolawa.

There’s a sense of brotherhood here, and all the boys feel it.

Here, he’s working on self-control, and appreciates the school’s leniency as he learns. Unlike other schools he’s been to, he says “…It’s just really good at helping me calm down, and they won’t just suspend you if you swear like another school will.

But you would get in trouble obviously, it’s not like you swear and you’re fine; you’re obviously in trouble, but you don’t get, like, suspended.” For children with behavioural problems, this tolerance is much appreciated. Toogoolawa is proof that a different approach was needed for young boys like Kai, who don’t fit in at normal schools, and it’s making a world of difference.

“There’s a sense of brotherhood here, and all the boys feel it.” Kai talks about how “…they all have issues like me, so they understand where I’m coming from.”

This extends to disagreements too, as an 16

all-boys school is bound to have, where classmates get the opportunity to settle fairly and in a safe environment.

On their excursions to the PCYC where they train to do wrestling, if you have a score to settle, as Kai simply puts it, “You just say ‘Do you wanna be my partner?’ and then you beat ‘em up. It’s as simple as that.”

But it’s not all excursions and exercise, Mondays and Thursdays they have Quiet Time, which is exactly that.

Through meditation and prayers they “…let everything go out of our mind.” I Kai Collins understand why so many of the boys look forward to it, - it sounds like a gentle, relaxing way to start the day.

They’re learning much more than Maths and English here. With a maturity well beyond his years he says that the truth he has found out about himself is that he “… can be a good person. … That’s impacted me because now I know I can be, like, a lot better, because I used to think I could only be the bad kid in the school.” Though subdued, you can hear in his voice that he sees his own progress and that he finally feels like he belongs, like he’s been given the fair go he deserves. This school has changed his life.

To Kai, Toogoolawa means “…all the teachers here care for you, and all the students really care for you, because they’ve got a place in the heart for you.”

CLOCKWISE: Kai Collins during his interview. A group of students enjoying Toogoolawa’s outdoor spaces. Students enjoying a roaring fire under staff supervision.

For additional information, or if you wish to help, please contact Toogoolawa School Phone: 1800 174 999 Email: office@toogoolawa.com.au

THE

Why

MEET

WA

The big man with a big heart.

W

a was originally asked to cover for staff on sick leave, but as a few weeks turned into more than six years, he’s now become ‘part of the furniture.’ He lives and breathes Toogoolawa’s core values in everything that he does, both professionally and personally.

Has working as a social worker at Toogoolawa become any easier with time?

The kids are always the hardest part. They arrive conflicted one way or another, so that’s never going to get easier.

But when it comes to life at Toogoolawa, definitely! I’ve built strong relationships with the staff, students and parents. Everything we do with the students is based on trust. If their parents believe we’re on this venture with the kids and do it with care and patience, there’s a better chance of success. The same goes with the staff – if we trust each other and appreciate everything we do, that team spirit transfers into the kids’ daily lives and they can trust us too.

Everything that happens at Toogoolawa, good or bad, makes me a better person.

About that outdoor classroom…

I remember very well how that started. I was sitting in a staff meeting where they were discussing plans to let five students go from the school because their behaviours were so extreme. I vividly recall thinking, “If not here, then where will these kids go?” It upset me, but I didn’t speak up at the time. I decided to talk to John first about my idea for an outdoor classroom to see if it was something that would be considered. If I had his support, then it would be easier to get across the line. I am so glad I did when I see the difference the classroom has made.

The same happened with camping.

Staff had to stop the school camps because they were having bad experiences with the kids.

I wanted to have another go, so Gerry Wa, John and two Toogoolawa boys on agreed to let the Kokoda Challenge hike. me take my class camping.

Now all classes too need to be heard and go on one camp per term. The kids that it’s okay to feel strong at Toogoolawa need to be outdoors emotions. It’s being human. as much as possible. Nature is so Mens Medicine is a message therapeutic for anyone, especially we want society to hear and people who have experienced embody. Men should share severe trauma. I’m grateful Gerry their feelings and emotions. trusts me, allowing me to run my Too many men are taking their class as I see fit. It takes a special own lives because we’ve been kind of principal to run our type of taught to bottle things up and school, and thanks to him, it works. we’re weak if we ask for help.

We are only human I use the same strategies at It’s hard not getting attached both Toogoolawa and @Mens to the boys as you see them Medicine. overcome their challenges. Two Be all you can be boys in particular come to mind: Being a single dad of four Callum and Zac have been the kids, I have been able to apply most challenging students for me some of the valuable tools I’ve so far. Both of them displayed a learned at Toogoolawa to my lot of physical and verbal violence own family. My kids meditate, for a long time. There were we make acknowledgements definitely times when I questioned at the dinner table every night myself and whether I was doing and I believe my kids are more the right thing. Thankfully, with grateful for the life they have, persistence they came around. knowing what the kids at The relationships I built with Zac Toogoolawa go through. I’m and Callum were very strong and humbled to see them grow and they left the school better than challenge themselves, and they arrived. I am so proud and every day with them is a gift. thankful to these boys because Above anything else, I teach they both taught me compassion kids to be good humans. It and patience. sounds simple but for me it From boys to men comes down to this: being a My purpose in life is not just to good human will make you and help boys but also men who need others feel good and I believe comfort and compassion even this is the way to have a good though they may not know it. life. You just have to figure out Traditionally, men have had to what it means to you to be a be strong, and some can fall into good person. a trap, not realising that they

17

WHAT MAKES US

Remarkable What makes us remarkable is our numbers and as John says “there’s only truth in numbers.”

S

tatistics show that only 8% of Australians buy one investment property and less than 0.3% of all Australians buy four or more. Our business is the only organisation with 20 years of investment property history and so many clients with four or more properties. THAT is what makes us remarkable.

What’s even more remarkable is that using the 7 steps strategy, our clients have been getting a 100% return on their equity for years and years, using the 7 steps strategy of leverage, tax deductions and cash flow to build their land bank.

Step 1 in 7 Steps to Wealth is also remarkable: Buy land for growth.

It was John that rang the bell with ‘one

truth’ that land appreciates and buildings depreciate. Land is the commodity, you simply can’t make any more of it.

John started buying land for $16 per m2 in 1984. Our first clients bought 1,000m2 lots in Pimpama for $66,000 in 1998 with total house and land costing them circa $170,000. Today the land alone is worth $600,000 given its propensity for higher density subdivision as we target super high growth areas.

That 1998 property also rents for $22,880 p.a. or equivalent of 13.4% p.a. return today, and grows by circa $50,000 p.a. At 10% deposit the Maths on this return are off the charts.

The chart on the right compares

2000 GST introduced Sydney Olympics

compound growth rates for all asset classes 1989-2019 published by Vanguard.

We added our land on a $ per m2 rate, showing how it is outperforming all other asset classes.

What’s more remarkable is that the majority of our clients invest in 7 Steps properties using as little as 10% deposit or equity from their own home.

2003 China emerging to buy raw materials Baby boomers start retiring

1998 7 Steps to Wealth first published. We host our first seminars

18

2001 Brisbane market boom

2004 Perth market boom

THE

What

3

$

OUR LAND HAS OUTPERFORMED THE MEDIAN HOUSE PRICE

WE HAVE

CLIENTS HAVE ACHIEVED ON AVERAGE

72% 40%

BILLION

IN LAND TRANSACTION EXPERIENCE

P.A

RETURN ON EQUITY

Asset Class Comparison Numbers Return on $1,000 Investment Across Asset Classes $35,000 $30,042

$30,000

$25,000

$18,928

$20,000

$15,000 $13,943 $10,583

$10,000

$5,000

10.3%

$8,048 $5,195 5.6% CAGR

7.2% CAGR

8.2% CAGR

12.3% CAGR

$14,636

9.4% CAGR

9.2% CAGR

CAGR

$ Cash

Iternational Shares

Australian Bonds

Property

Australian Shares

US Shares

Australian Land SOURCE: VANGUARD

2008 GFC Stock market collapes

2006 Mining boom in full swing

2012 Sydney market boom

2011 RBA cut rates

2018 Toogoolawa extension completed

2013 Melbourne market boom

19

Momentum Here is an example of what our clients were buying back in 1998 and what they are worth today. You will notice that in some of the properties bought in the earlier years, the land price alone is higher than the house value.

Year

City

Suburb

Land Size

Land Price

Purchase $ per/m²

Contract Total Price

2019 Land price

2019 $ per/m²

$ per/m² Growth

2019 Total Value

Total Growth Amount

Initial Yield

Passing Yield

1998

Brisbane

Morningside

444

$95,000

$213.96

$192,000

$600,000

$1,351.35

532%

$650,000

$458,000

5.2%

13.54%

1999

Brisbane

Manly West

784

$90,000

$114.80

$121,000

$650,000

$829.08

622%

$650,000

$529,000

5.2%

21.49%

2000

Brisbane

Carina

1110

$125,000

$112.61

$260,000

$800,000

$720.72

540%

$810,000

$550,000

5.2%

10.00%

2001

Brisbane

Shailer Park

1487

$74,127

$49.85

$235,000

$600,000

$403.50

709%

$600,000

$365,000

5.2%

10.62%

2002

Perth

Canning Vale

655

$87,000

$132.82

$217,000

$450,000

$687.02

417%

$470,000

$253,000

5.5%

9.59%

2003

Brisbane

Mackenzie

840

$155,000

$184.52

$321,400

$650,000

$773.81

319%

$665,000

$343,600

5.2%

9.63%

2004

Brisbane

Algester

1144

$175,000

$152.97

$385,000

$730,000

$638.11

317%

$730,000

$345,000

3.9%

6.35%

2005

Brisbane

Murarrie

1004

$240,000

$239.04

$440,000

$850,000

$846.61

254%

$850,000

$410,000

3.5%

5.91%

2006

Brisbane

Algester

836

$180,000

$215.31

$404,000

$560,000

$669.86

211%

$565,000

$161,000

4.8%

5.79%

2007

Melbourne

Williams Landing

645

$120,000

$186.05

$325,000

$645,000

$1,000.00

438%

$720,000

$395,000

5.4%

7.20%

2008

Melbourne

Truganina

452

$115,000

$254.42

$350,000

$400,000

$884.96

248%

$475,000

$125,000

3.9%

5.20%

2009

Melbourne

Lyndhurst

620

$163,000

$262.90

$389,900

$550,000

$887.10

237%

$590,000

$200,100

4.4%

5.60%

2010

Melbourne

Tarneit

640

$188,000

$293.75

$332,000

$450,000

$703.13

139%

$590,000

$258,000

4.9%

5.80%

2011

Sydney

Pemulwuy

506

$290,000

$573.12

$565,000

$750,000

$1,482.21

159%

$880,000

$315,000

5.9%

5.98%

2012

Sydney

Glenfield

560

$280,000

$500.00

$516,000

$600,000

$1,071.43

114%

$775,000

$259,000

5.0%

5.54%

2013

Sydney

Bardia

603

$320,000

$530.68

$530,000

$650,000

$1,077.94

103%

$790,000

$260,000

5.1%

5.64%

2014

Sydney

Edmondson Park

529

$330,000

$623.82

$580,000

$600,000

$1,134.22

82%

$785,000

$205,000

5.2%

5.20%

2015

Melbourne

Doreen

555

$220,000

$396.40

$445,000

$410,000

$738.74

86%

$600,000

$155,000

4.7%

4.7%

2016

Melbourne

Mernda

517

$225,000

$435.20

$440,000

$400,000

$773.69

78%

$600,000

$160,000

4.7%

5.20%

2017

Melbourne

Doreen

874

$309,000

$353.55

$539,000

$500,000

$572.08

62%

$650,000

$111,000

3.9%

3.86%

2018

Melbourne

Wollert

535

$350,000

$654.21

$585,000

$410,000

$766.36

17%

$585,000

$0

3.6%

3.56%

2019

Melbourne

Mernda

505

$360,000

$712.87

$595,000

$400,000

$792.08

11%

$595,000

$0

3.50%

3.50%

20

THE

What

“It doesn’t matter how slowly you go, so long as you do not stop.”

- CONFUCIUS

What if you started with us in 1998?

Bought 1 property every 2 years

Bought 1 property every year • • • • •

Invested $67,800 You would have 11 properties A land bank of 7,422 m2 of land A net income of $108,640 p.a.

Your net equity in 2019 would be $2.7 million, continuing to grow each year by 7% - which equals to $490,000 p.a. - all with just a $67,800 initial deposit.

• • • • •

Invested $85,950 You would have 22 properties A land bank of 15,845 m2 of land A net income of $225,612 p.a.

Your net equity in 2019 would be $5.9 million, continuing to grow each year by 7% - which equals to $1 million p.a. - all with just a $85,950 initial deposit

What if you started with us in 2010?

Bought 1 property every 3 years

Bought 1 property every year

• • • • •

• • • • •

Invested $28,800 You would have 8 properties A land bank of 5,985 m2 of land A net income of $83,432 p.a.

Your net equity in 2019 would be $2.2 million, continuing to grow each year by 7% - which equals to $370,000 p.a. - all with just a $28,800 initial deposit.

Invested $135,000 You would have 10 properties A land bank of 5,824 m2 of land A net income of $63,439 p.a.

Your net equity in 2019 would be $1.7 million, continuing to grow each year by 7% - which equals to $480,000 p.a. - all with just a $135,000 initial deposit.

$

1998

INVESTED

PROPERTIES

LANDBANK

INCOME P.A.

EQUITY

GROWTH P.A.

ONE PROPERTY EVERY YEAR

$85,950

22

15,845m²

$225,612

$5.9M

$1M

ONE PROPERTY EVERY 2 YEARS

$67,800

11

7.422m²

$108,640

$2.7M

$490,000

ONE PROPERTY EVERY 3 YEARS

$28,800

8

5,985m²

$83,432

$2.2M

$370,000

$135,000

10

5,824m²

$63,439

$1.7M

$480,000

2010 ONE PROPERTY EVERY YEAR

21

WHAT MAKES US

Remarkable We have delivered 320 land developments in five major cities over 21 years, with not one property costing $1 over budget.

4.1 WE HAVE DELIVERED

million m2 OF LAND

3,800 11,200 PROPERTY INVESTORS

PROPERTIES

1

NOT ONE PROPERTY DELIVERED

$

OVER BUDGET

Today’s properties can offer Dual Occupancy opportunities, enabling double income for our investors.

Our uniqueness is that we de-risk the process and provide guarantees.

22

THE

What

5

CITIES

320 21

DEVELOPMENTS

+ 192

DEVELOPMENTS

YEARS

Brisbane / Gold Coast

16

DEVELOPMENTS

4

DEVELOPMENTS

23

DEVELOPMENTS

Perth Adelaide

Sydney

85

DEVELOPMENTS

Melbourne

CUSTODIAN PROPERTY BUILT 15 YEARS AGO

320 DEVELOPMENTS

....AND NOW

OUR CLIENT PORTFOLIO IS CURRENTLY VALUED AT OVER

4

$

+

BILLION

300

$

OVER

MILLION

SAVED IN TAX 23

OUR

Clients What I found refreshing when I first think about it, was that it wasn’t about here’s something for you to buy, it was actually about the need to learn about why we invest, and how we choose our property locations.

CRAIG CHU 6,106m2

2002

13

Client Since

Properties

4 Landbank

Cities

It’s been more than 15 years since Craig joined the program, and he now owns 13 properties following John Fitzgerald’s strategy; he has been able to to pay off his mortgage earlier, using the equity to purchase more properties and duplicate.

He says that initially, he was afraid, because it’s too easy to find reasons not to take that first step. Looking back now, he is glad he took the leap.

Craig reflects back on how it all started: “I found that there was a lot of information out on the market. There was just so many people talking about property when I started and it was quite confusing. I really got confused and scared. Scared to start, scared to put all that money into something that’s so valuable and in big demand.

What I found refreshing when I first think 24

about it, was that it wasn’t about here’s something for you to buy, it was actually about the need to learn about why we invest, and how we choose our property locations. So that was something very different, that I didn’t see before.

Custodian means that I have a system, I have a method of investing that replicates and that works. I’ve also introduced some of our closest relatives and they’ve also started the journey.”

Craig acknowledges that when you do look around for solutions on how to invest for the future, the first thing you do is talk to friends, family and colleagues — naturally. Most people will find reasons to be careful, and freeze, perhaps by fear or procrastination. Not starting seems so much easier.

“I realised that one sure way of not getting results is to not do anything. I would advise anyone to investigate and surround yourself with people who think that way, it’s definitely the motivating factor for me.

It’s been 17 years since I’ve started the programme and we have used all the

advantages within the tax system to help us pay off our mortgage earlier; We have also been able to use the equity build up in our own home to purchase investment properties and to duplicate. That’s been a fair eye opener for me.

Custodian gave me the security and the confidence of dealing with people that I can trust to help me start this journey.

I’ve never looked back since.”

Craig Chu was, like many other Australians, overwhelmed. He was interested in property but there were so many voices in the market that he didn’t know whom to trust. Then, like the clouds parting, he found Custodian.

For him, the transparency was refreshing. He had found a group of people he could trust — and trust is paramount when you’re putting so much money on the line.

“I’m now on my way to financial security, I have a pathway. Here I am, a number of years down, and I have done it.”

THE

Who

JENNY FORDHAM-LEPPITSCH 6,865m2

2007

10

Client Since

Properties

3 Landbank

Cities

Jenny has been part of the Custodian team for many years, and knows the strategy so well she’s used it for herself to build up an impressive property portfolio of her own.

With 10 properties, including the family home, her portfolio is worth more than $5 million; she can happily say she’s on track to retire in comfort, “…only because we were prepared to go for it.”

Before joining Custodian they had dabbled in shares, and their first foray into property resulted in a disappointing loss, as they had to sell for $5,000 less after nine years. They also invested in another scheme, which saw them with a six-figure debt they could only get out of, by selling the one property they owned which had appreciated in value.

Determined to make it work, Jenny took up an offer from one of the estate agents she

had bought from, and attained her Agent’s Representative licence, eventually moving on to General Manager of a local property investment company. Around the same time, her brother had gotten involved with Custodian, and encouraged her to come along to one of the seminars. It was a lightbulb moment for her.

“I thought I was an astute investor, but after hearing John speak, three things stuck in my mind: 1. Buying a property and holding onto it.

2. It’s the land that appreciates and 3. There is a big difference between investing and building wealth.”

Initially, her goal was to own just four properties, but once they accomplished it, they reset their goals, knowing the sky’s the limit. “We moved quickly with our portfolio

due to our age, knowing we had a limited timeframe to build wealth for our future — not that we think we’re old by any means, it’s just like a good bottle of wine that needs time to mature: our portfolio needs time to grow.”

We moved quickly with our portfolio due to our age, knowing we had a limited timeframe to build wealth for our future.

Please note that some numbers may not reflect non-Custodian properties. They are indicative only.

25

OUR

Clients STEVE & KERRY BISHOP 3,059m2

2005

5

Client Since

Properties

2 Landbank

Cities

Steve and Kerry Bishop went from having no assets between them, when they first met, to owning five investment properties worth millions of dollars.

Kerry had a small amount of money leftover from the sale of her previous home, so re-establishing themselves was their first challenge as a couple. They found a house they could afford and set to work, paying it off diligently while making improvements wherever they could. They had good incomes; but after their daughters grew up and left home they realised they needed to start planning for their retirement.

invested in a residential property syndicate — but when it came to seeing their returns they had to actively pursue their money, which they used to pay down their mortgage. Three months after they managed to get their money, the company collapsed.

Disappointed but not defeated, they saw one of John Fitzgerald’s TV infomercials and resolved to try again, after working through the Untold Wealth: Success from Scratch workbook, and attending one of the seminars. They used equity from their home to fund the deposit for their first Custodian investment property in Brisbane.

They bought another property for Steve’s parents to live in and then bought their next

Custodian property in 2006, then another in 2007.

Encouraged by the transparency and proven results, they now own five properties and are more than prepared for retirement, thanks to their focus and discipline. Their daughters are following in their footsteps, too, owning their own homes and investment properties.

DAVID & DADA BAILEY 6,673m2

We moved quickly with our portfolio due to our age, knowing we had a limited timeframe to build wealth for our future.

Looking around at what others were doing, they went to their accountant, who set them up with a portfolio of shares.

However, Steve recalls, “They were going nowhere fast. We realised shares weren’t going to get us the capital growth we needed to change our lives. “ They bought their first investment property, then

26

2002

10

Client Since

Properties

3 Landbank

Cities

David had been looking for a secure way to create wealth and secure his retirement for more than a decade.

Despite having a good income and working long hours he wasn’t paying off his mortgage fast enough or building enough superannuation to have a comfortable retirement, so he consulted financial advisors, accountants and tax agents, trying to find a way to minimise the tax he was paying, then in 2001 he attended a

THE

Who

VINOD BALI & MEENA SHARMA 2,683m2

2011

7

Client Since

Properties

3 Landbank

Cities

Vinod and Meena found Custodian through a friend – Vinod saw the book and asked what it was about. His friend explained the philosophy behind it, and the couple decided to attend a seminar.

They now own seven properties, and enthusiastically recommend the strategy to family and friends.

“Attending the seminars and listening to the plans and the education we got from them, it was really like the life changing sort of thing, but also a change in my thought process.” Meena says, reflecting on those early years. “After buying that first property, it slowly got better and better.” They bought their first property, with Custodian, in Sydney, in 2011.

They still enjoy the benefits of that first property, Vinod says. “That property has done really good. So we use the

Custodian seminar.

He recognised that this strategy was the way forward, passively building wealth through property.

The Baileys’ wealth creation has paid off: the security of having a passive income has equipped them with the confidence to ride out personal hardships with grace and dignity. Despite being made redundant, setting up their own business and a health scare, the two have never missed a step and continue to

capital growth of that one to buy another one, and so on, and we have four properties controlling. We're happy with that. Our main purpose for investing in property was so we can set ourselves for retirement.”

They botha dmit they could have done it on their own but would never have been able to duplicate like they did without this strategy. “We would not have been able to buy four properties in the last four years.”

For Meena, it’s also about forwardthinking. “[It has] sped up our process and we are set for retirement; we don't have to worry now.” Vinod agrees: “The future is secure now.”

Thrilled with their own success

following the 7 Steps strategy, they have now introduced others to it. “We have recommended this programme to friends. One of our friends has already joined Custodian and bought a property through them. And we already told our future son-in-law, who is also going through the programme as we speak.

He's ready to buy his first property through them. He's excited.”

They are ensuring not only their own financial security but that of their loved ones, and that is the natural conclusion for so many clients.

Vinod and Meena are looking forward to their retirement with the certainty that they have a financial framework to support them and their family.

benefit from their investment properties with a positive outlook for their retirement.

Dada laughs, “When we thought we had completed our journey, we emailed John to find out what we needed to do to start preparing for our retirement, which we planned for April 2010. John had other ideas. He told us owning six houses was a great achievement, but suggested we push harder and purchase some more properties.”

Rising to the challenge, they used

the equity in their properties to buy another four houses on one block with the goal to redevelop it. The timing was right, and they were able to pull it off without even selling any of their existing properties.

They have gone on to subdivide their home and refinance to realise their ‘dream home,’ all while still enjoying a comfortable lifestyle, holidays, supporting their children and helping others in need.

We have recommended this programme to friends.

Please note that some numbers may not reflect non-Custodian properties. They are indicative only.

27

OUR

Clients

The equity and the extra cash have really enhanced our quality of life.

JASON McCARTNEY 3,584m2

1999

6

Client Since

Properties

2 Landbank

Cities

Jason McCartney was introduced to Custodian through his football manager, and has admitted that taking the plunge and getting into property investment was one of his best decisions. After joining Custodian in 1999 the McCartneys have acquired six properties, enjoying a portfolio worth millions, and capital growth in the high hundreds of thousands.

Jason began with a modest two properties in 1999, but says it wasn’t until ’03-‘04 that he really understood the potential of the Custodian programme.

Benefitting from a more aggressive approach, they’re looking forward to the future. “The equity and the extra cash 28

have really enhanced our quality of life. I’m so busy with work, this gives the family an opportunity to have a really great holiday at the end of the year.” Most adherents to the Custodian strategy have the goal of setting their family up for the future, not just their own. With a young family, they have a firm goal in mind. “…I want to expand our portfolio. Ultimately, we are working towards our dream home.”

Enjoying the growth they’ve seen from their properties, the time seems right to sell one. “I’m looking to sell the first Custodian property that I bought. It has more than doubled in value, so the growth criteria were spot on — and the property did everything that the program is about!”

Despite also diversifying into shares, Jason still insists that property is the best investment decision he’s made. “It’s safe, and has given me a strong platform. I can trust that I’m dealing with great people who have a sound understanding of the industry.”

DAMIAN & CAROLYN MEMBREY 3,151m2

1998

8

Client Since

Properties

4 Landbank

Cities

“When we first went to the seminar, we were not in the space of looking for property. We didn't actually have a plan for retirement, but what Custodian did is they advised us that we all need, even as young as we were, we needed to focus on how we're going to meet our retirement needs. Once we spent the time to investigate the plan and understand what they were actually offering, we could see that it would work for us.

We will probably purchase another one or two properties before we retire.

We're both looking to retire early, in the next five to 10 years. And, then we

THE

JAMES WALSCH-BUCKLEY 6.393m2

1999

7

Client Since

Properties

3 Landbank

Cities

James Walsh-Buckley describes his investment ventures prior to Custodian as a ‘tale of woe,’ owing to his false belief in buying property, selling for a profit soon after and then rinsing and repeating. Time and again, he noticed that the profits he had made on the properties he sold would soon be eclipsed by the amount they were worth decades later.

To him, keeping properties meant living off ‘the smell of an oily rag,’ so to speak. “I had no idea how to keep buying real estate and continue to live how I wanted to live. I realised I had to be taught because I wasn’t getting the true value from my earning potential.”

James knew his strategy was flawed, and wanted to correct his mistakes to set a good example for his children, so when

would sit back and reap the benefits of our portfolio.

Without Custodian, our lives would be significantly different. We now have a very focused plan on what we need to do, to build wealth for our retirement. That has given us tremendous opportunities throughout the journey to provide wonderful opportunities for our children; it has also enabled us to release some of the wealth that we've been amassing throughout this process. It's not all about waiting for retirement. Along the way you need to have a bit of fun also. “ Damian reflects.

“The journey with Custodian has been

he read about Custodian in the paper he decided to attend one of the seminars, and felt a real connection to John as he addressed the crowd. “I thought, ‘That fellow really means it.’

That’s why I delved deeper and got involved — merely because of John’s sincerity.”

A decade since adopting the Custodian formula for wealth building and he’s made up for his property faux pas — with interest! He has seven properties now, including the family home, with no signs of slowing down despite his age. In fact, he credits his vitality and positive mindset to a lifelong passion for martial arts, which he still practises devoutly.

All of his sons have inherited his ambition, following his example and establishing their own investment property portfolios, supporting their young families and

one of education and knowledge, and what we've been able to do is pass that education and knowledge onto our children, even to the extent that we've given them their own shared portfolio to manage; they're now well and truly on target with their properties. They visit the properties when we do our inspections and they're aware that it is important to have a strategy for retirement, even at a very young age.

Custodian's 7 Steps to Wealth strategy is understandable and believable and it works.”

Who

galvanising the next generation.

For James, there is no greater satisfaction. “I’m very pleased that I’ve been able to share the custodian formula with other people. I just hope my sons will continue investing in property using that formula while they’re young.”

Without Custodian, our lives would be significantly different, We now have a very focused plan on what we need to do to build wealth for our retirement.

Please note that some numbers may not reflect non-Custodian properties. They are indicative only.

29

OUR

Clients WAYNE & MELISSA SCARLETT 3,197m2

2009

6

Client Since

Properties

3 Landbank

Cities

Melissa Scarlett was sceptical when she first saw John’s infomercial for Custodian.

With all his talk of getting people to set ‘audacious goals’ and ‘being all you can be’ she wanted to believe it was true, but decided to investigate whether she could place her trust in him.

“I tried to find the ‘dirt’ on them but I couldn’t find any!” With a portfolio of six properties together with her husband Wayne, she now reaps the benefits of having faith in John’s strategy. Born into financially astute households, both she and Wayne grew up with budgeting in their blood. “I saved when I was young, and believe in living within your means”

With a portfolio of six properties together with her husband Wayne, she now reaps the benefits of having faith in John’s strategy.

When they first met each other, Wayne owned his home outright and Melissa’s mortgage was only small, so when they decided they wanted to start a family together they sold Melissa’s property to pay for renovations to Wayne’s.

30

Melissa had invested in property before, so when she heard about Custodian it made sense to her to get back into it and build up a portfolio to secure the future of their family. In the first two months they purchased two properties in Brisbane, with more properties swiftly following, using the ample equity in their first home.

With a property portfolio value in the millions, they look forward to retirement, which they plan to spend travelling in their caravan, taking short trips overseas and, ideally for Wayne, live on some acreage along the southern New South Wales coast. With their children showing an interest in investment properties too, they look forward to watching and encouraging the next generation of wealth builders.

Having achieved goal after goal for themselves, they’re eager to share their positive experience. “We’re proud of what we’ve accomplished, that’s one of the reasons we wanted to do this interview — and to show others that it can be done.” Melissa says.

MARK & MARGARET WACHNIK 5,703m2

2013

13

Client Since

Properties

3 Landbank

Cities

The picture of financial responsibility, Mark and Margaret saved for the deposit on their first home while living with family, and paid off their loan in just five years.

“We lived very plainly,” Margaret explains. “We just didn’t take holidays and we often just took sandwiches to work. We had second hand furniture from St Vincent de Paul and some of the rooms were unfurnished for many years.” Despite being debt-free, putting all the money they could into paying off their home loan meant the Wachniks

THE

Who EDDIE & VICKI BUTLER 1,041m2

2010

5

Client Since

Properties

3 Landbank

Cities

Western Australia is a property success story, the ongoing resources boom financing the dreams of many. Eddie and Vicki began investing in property in 2003 after moving into Newman to enter the mining industry and haven’t looked back since.

“We’re certainly financially better off compared to when we were living in Perth,” says Eddie, who got the idea for the move from a friend who had gone into mining. He had done a range of jobs from driving public transport buses to doing maintenance work

for telecommunications providers. “When I was driving buses, I worked shifts and took as much overtime as I could to pay off the mortgage on our house. I hardly saw the kids.”

His work contract now includes perks like an interest-free housing loan, a buy-back scheme and, what the kids like best of all, subsidised air-conditioning. The buy-back scheme means they pay very little per month on their mortgage, and the capital growth on the house puts them in an enviable position when the time comes to sell.

The mining boom and accommodation shortage created a surge in Fly-In-Fly-Out workers, who recklessly used their money to pay off a house in a short amount of time only to sell it far too soon and leave. “You saw a lot of them with their $80k four-wheel drives and spending up big on holidays” he

says. Depreciating assets like flashy cars didn’t make sense to Eddie and Vicky. They wanted a long-term, sustainable source of income for when their two kids grow up.

After buying a property in Alexander Heights they bought two more with Custodian in Queensland and Victoria.

“We’d like to invest in at least one or two more before we retire, Eddie says, looking towards the future with confidence. “When Vicki wants to retire, we’ll move and build our dream home.”

We’d like to invest in at least one or two more before we retire.

When Vicki wants to retire, we’ll move and build our dream home.

With 13 properties collectively worth more than $7 milion in their portfolio, they show no signs of slowing down. hadn’t built up any savings.

After buying land for their dream house and purchasing Margaret’s father’s small goods manufacturing business, they knew they wanted more. After researching personal finance they finally found Custodian. “We were always looking for other sources of income and we decided that property was for us.”

With their exemplary financial habits, they soon purchased two properties in Brisbane, then bought a third only months later. Property number four came in 2002, with another one in Western

Australia the next year.

With 13 properties collectively worth more than $7million in their portfolio, they show no signs of slowing down.

In 2008 they purchased their million dollar Sydney home with water views, renovated it and moved in in 2010. Even so, they still diligently save the 20% deposit themselves for each new property. “We just can’t bring ourselves to use the equity in the houses.” Margaret laughs.

“Our family think we’re lucky to be in

the financial position we’re in now, but they don’t realise how humble our beginning was.” Margaret says, no doubt reminiscing about packed lunches. Now they have the opportunity to pass the Custodian wealth building knowledge onto their sons, to give them the best start possible in life.

Please note that some numbers may not reflect non-Custodian properties. They are indicative only.

31

OUR

Clients JEFFREY WELLS 4,092m2

REBECCA & JAMIE QUARRIER 1,763m2

2015

4

Client Since

Properties

3 Landbank

Cities

With some good equity in their home, Bec and Jamie were looking to invest and had started doing some research. As a child, Bec had seen her parents invest in property as her mum is a Custodian client. Bec read John’s book 7 Steps to Wealth, and although Bec and Jamie were apprehensive at first, things fell into place after attending a Custodian seminar. On the way home, they talked about playing it safe or taking a risk and a short time later they bought their first investment property in Queensland.

In the four short years since being with Custodian, Bec and Jamie have started a family, bought three investment properties and significantly paid down the mortgage on their home. Jamie adds, “Custodian does a lot of the work which makes it easier.

They tell you when you can invest, and the best places to invest. There’s been times when we didn’t think we could get another property, but with our consultant’s advice 32

we’ve been able to get another one. It’s been really easy. Custodian handles everything including the finance. There’s a little bit of running around we have to do to get our finance details together, but they do the rest.”

Looking back, Bec and Jamie know that while they could have invested without Custodian’s education and support, they would have made a lot more mistakes investing on their own. “We could have done it ourselves but to actually start the process, it’s daunting. Building your own home is hard, let alone houses in other states. They make managing our portfolio pretty easy and it doesn’t take much time. We check in with our real estate agents every now and then and keep an eye on our finances using a spreadsheet. It’s a couple of phone calls a month,” explains Jamie.

Next to their two beautiful sons, Bec and Jamie consider their greatest achievements as acquiring their three investment properties and almost paying off their own mortgage by the age of 30.

When you’re in your early 30’s, it’s hard to think about retirement, but Bec and Jamie know that by starting early, they’ll have more options compared to people retiring on the aged pension. Bec says, “We’re taking all the steps we can to retire when we choose. It’s good for us and our children’s futures but we’ll also have the financial freedom to care for our parents and other family members if they need us.” For now, it’s about staying on course and looking for future investment opportunities.

2001

10

Client Since

Properties

2 Landbank

Cities

As a Senior Executive at IBM, Jeffrey Wells has a sixth sense for good strategy, so he always knew there was money to be made in property; he just hadn’t found the right system.

One day he received a flyer in the mail and it was as if it was meant to be: the principles outlined made sense to him so he met with John Fitzgerald and now only wishes he had known what he does now decades ago.

His three life mottos are ‘work hard and play hard,’ ‘make the most of quality time’ and ‘do it right the first time,’ so when he took that first step into property investment, he’s glad he did it with Custodian. “Meeting with John, whom I nickname ‘The Oracle,’ helped push me out of my comfort zone.

No more procrastination: it was time to act!”

As a younger man, he regrets that he had spent his money on cars and shares that ‘weren’t spectacular.’

Starting out with Custodian, he thought it was about buying houses, but he soon learned it was much, much more.

He fell in love with “…the buzz, personal growth and friendships that are found in mixing with other successful, goaloriented people.”

“Set and reset your goals constantly.

Life moves and you need to adapt with that movement.” For Jeffrey, comforted by climbing rents and property values, his goal of owning 12 investment properties is within sight.

THE

Who

MANNY & BRENDA AVELLINO

ELIZABETH WILLIAMS 2,037m2

3,343m

2

1998

6

Client Since

Properties

2 Landbank

2018

6

Client Since

Properties

3 Landbank

Cities

Cities

Many people come to Custodian to secure their retirement, after buying a single house to live in and finding out it might not be enough. Manny (better known as Lino) and Brenda Avellino lived in a caravan for roughly a year in order to save up for a deposit. Once they bought their humble first home they saved for another four years to renovate it before starting their family, doing much of the work themselves to stretch their money further. After the renovations were complete they set to paying down the mortgage, and started thinking about investing. In 1998 John had just established Custodian, and Brenda spotted his ad in the paper.

Inspired, they went on to read the book and for them, the rest is history.

Lino explains: “…most of us rely on superannuation to provide all the answers in retirement. But as so many Australians find out, superannuation is not enough.”

They bought their first two investment properties in 1998 using the equity in their family home, and

now they are on track for their goal to be financially independent in their retirement.

“Having the benefit of time and watching the capital growth in our properties, it’s clear that investing in residential property is by far the safest and most reliable investment class for us.” Having had a negative experience with shares during the GFC, Lino and Brenda speak from experience.

Committed to lifelong learning and staying ahead of the curve, the two still get regular property market updates through John’s events, reminding them constantly of their goals and why property is their chosen strategy.

Most of us rely on superannuation to provide all the answers in retirement.

But as so many Australians find out, superannuation is not enough.

“My step brother John is a big property investor. He built a portfolio of 12 properties by himself. When John recommended I invested, I thought I’ve got my house, why be greedy? But eventually I bought one.

John kept encouraging me to buy more and over time I bought three,” says Elizabeth.

Elizabeth also went to a few property investment seminars, but she was wary because they wanted money upfront. Then she found Custodian and she had the feeling that they were different, “Everything was clearly explained and transparent. I thought, what have I got to lose? I’ve got three properties already. I’ll go for it.”

Before Custodian, Elizabeth bought a couple of units, but she now understands the importance of buying land for capital growth and building a new house to take advantage of the tax concessions and benefits. She also likes how Custodian takes care of everything – including helping her restructure her existing loans to improve her cashflow.

“Until Custodian, I hadn’t thought about retiring, but now, I’m transitioning to retirement. I’m going to help care for my mum who has early stage dementia.

I put her through quite a bit when I was young, so I want to take care of her now and make the most of our time together.”

Elizabeth will use what Custodian has taught her to make the most of her portfolio in retirement, “The properties I bought before Custodian are older, so I’ll sell those and keep the new Custodian ones. I’m heading in the right direction now.”

Please note that some numbers may not reflect non-Custodian properties. They are indicative only.

33

OUR

Clients

WENDY HORAN & BRETT HARRIS 2,707m2

2005

4

Client Since

Properties

3 Landbank

Cities

Wendy and her first husband Grant started their Custodian journey in 2005. They had two small children (aged two and four) and wanted to make plans for their future. Grant had heard about Custodian and after attending a seminar, they decided it was the path for them.

“What I love about Custodian is they help you get started. They co-ordinate every part of the purchase process – that appealed to us since we had no experience in property other than buying our family home. We loved travelling to Queensland to choose the block of land, then watch the construction phase. It all went smoothly, and the house was rented easily,” explains Wendy.

In 2007, Grant was tragically killed. “The police knocked on my door at 1am. It was such a shock,’ she recalls. Wendy was 35 years old with a three- and five-year old.

“Being the money person in our marriage

34

helped, so I was on top of our finances.

The investment property looked after itself and Custodian checked in with me regularly. I took two years off work to concentrate on myself and the kids.”

Two years later, Wendy met Brett salsa dancing. Their friendship grew into romance and he fully embraced life with Wendy and her children.

They married in 2012, “Brett is the most wonderful man and has an amazing relationship with both children.”

Around the same time, Jennifer Fordham-Leppitsch became their Custodian consultant. “Jen gave us wonderful advice and encouragement to Brett while he was building a side business to allow him to leave his fulltime job and create a passive income,” says Wendy. “We purchased our first property together in 2012. Once again it was smooth sailing and has been rented 100 per cent of the time.” Jen celebrated with them when Brett was able to work for himself in 2017.

His business has continued to grow, and they have bought their third property this year.

Lead by example. Look after yourself and everything else will flow around you.

“I love how I started my wealth building journey with Grant and I’m continuing it with Brett. You can plan for the future but the now needs to be good too. After the trauma I lived through, it’s important to Brett and me to reduce stress in our lives and live life to the fullest.

With our wealth plan we have time on our side and we’ll buy more property when we can,” reflects Wendy.

“I think my greatest achievements are how I have lived my life after tragedy and how I’ve raised our children. It also feels good knowing we won’t have to rely on the aged pension and we hope our legacy will flow to future generations in our family.”

RHONDA & BOB HAYLES 1,894m2

2017

3

Client Since

Properties

2 Landbank

Cities

Rhonda and Bob had previously owned an investment property with Defence Housing Australia. After attending a Custodian seminar and speaking to consultant Jennifer Fordham-Leppitsch, they were surprised to learn they could achieve what they wanted.

“We love Custodian. John and Alex are amazing people. Hearing their success stories is very inspiring. The wonderful support all the staff at Custodian provide is outstanding. Nothing is a problem.

You can ask them anything. If they don’t know, they’ll find out,” says Rhonda. Bob adds, “They make it so easy. John is careful where he buys the land, knowing there’ll be a high rental demand. They handle all the paperwork and advise us when we can invest again.”

THE

Who

KEN, KERRY & MATTHEW FORSYTH 1,992m2

2002

4

Client Since

Properties

3 Landbank

Cities

Ken and Kerry were always interested in investing in property, but it was easy to put it off. In 2016, their youngest son Matthew showed interest in a new apartment complex to be built near a friend’s house in Melbourne. Together, they purchased a three-bedroom apartment off the plan.

In 2018, Kerry’s brother Grant, who is a consultant for Custodian, encouraged Ken and Kerry to attend a 7 Steps seminar. Keen to invest again, they purchased their first investment in Adelaide. “Knowing what we know now, we wouldn’t have bought the apartment,” reflects Ken.

Rhonda and Bob purchased their first property in 2017 and have just settled on their second. “We’re a little excited, as we never dreamed this would or could ever happen. In another year we will be looking at a third property,” says Rhonda.

The couple agrees that their marriage - which has lasted more than 17 years and building their portfolio in that time, have been their greatest achievements.

The portfolio has provided security for

“We’ll hang onto it until we can break even but it’s house and land from now on.

We’re hoping to buy our second Custodian property with Matthew.”

Ken explains that while starting their property investment journey in their mid-50’s was a big step, they know they have made the right decision. “Kerry and I have good super but the financial world has changed. There’s less security around retirement income now.”

They consider their greatest achievement seeing their three boys succeed in their chosen careers – and spending time with their five grandchildren is priceless.

Ken and Kerry expect to work for another 10 years so to build their portfolio. “We’ll take the opportunity to invest when we can, we want to be able to enjoy a good life in retirement and travel; and we like the idea of rental income to supplement our super in retirement,” says Ken.

themselves and their adult children. Bob says, “Rhonda is younger than me so it’s security for her and it’s hard for a young couple to buy a house now. By having our investment properties, we can achieve what we want for the future and our kids will be fine.”

Despite being a retiree, Bob is actively involved in their two businesses – limousine hire and breeding Cavoodles. Rhonda also works part time as a driver for patient

transport. However, in a year or two they plan to buy a caravan and travel around Australia with their dogs for a few months a year. “Purely to get away from Melbourne’s cold weather!” says Rhonda.

Knowing what we know now, we wouldn’t have bought the apartment.

Give more than you take; it makes you a better person.

Please note that some numbers may not reflect non-Custodian properties. They are indicative only.

35

OUR

Clients HARVEY & BRIDGET LANG 4,499m2

2003

9

Client Since

Properties

3 Landbank

Cities

Harvey and Bridget owned their own home and two investment properties in Horsham before they heard about Custodian. They wanted to invest again, but in a capital city. Harvey saw John’s newspaper advertisement and watched John’s infomercials late at night after coming home from playing football. After a few months he made the call. In 2003, the Langs bought their first Custodian property in Queensland.

Over the next two years they sold their properties in Horsham and bought another Custodian property in Perth. Many things have changed for Harvey and Bridget since being with Custodian. Harvey knew that as a PE teacher he wasn’t going to have enough money to retire comfortably. With the help of their investments, the Langs were able to move to Torquay where Harvey bought a franchise business and became more serious about his AFL football coaching.

“We were able to apply the knowledge and skills we learned from Custodian to other parts of our lives. John always says to think of an alternative solution to a problem,” so we rented our primary place of residence in Horsham to a mining company.

This gave us sufficient cash flow while establishing ourselves in Torquay. We then sold our investment property in Western 36

Australia (2010) which helped us buy land in Torquay that we otherwise wouldn’t have been able to afford,” explains Harvey.

Harvey and Bridget agree that their greatest achievements are their strong marriage and instilling a strong work ethic, and care for family and friends in their three sons. Harvey also appreciates Bridget’s support for his business and helping them lead an exciting life.

In 2014, Harvey sold his ‘Aussie Farmers Direct’ Franchise and began a new, rapidly expanding and successful business in home care. Their company now employs over 140 staff. “John talks of setting audacious goals and Bridget and I are keen on more travel and enjoying the second phase of our working life. Custodian has given us the confidence to achieve anything we put our minds to,” says Harvey.

Harvey has no plans for retirement and the Langs will continue to acquire more properties. “We’re building generational wealth. Bridget and I are glad that we have built up substantial equity in our property portfolio, so we can assist our boys in buying their own properties and they will eventually manage our ‘land bank’.

Our business is caring for people in their homes, so I will continue supporting people in the community and those less fortunate,” he says.

Harvey and Bridget want to create many life memories for their family and always be available to help others in both their immediate family and the community, to lead a productive, exciting and successful life.

SIMON GRAY & KATHERINE HO 2,582m2

2017

5

Client Since

Properties

3 Landbank

Cities

Simon and Katherine have always believed property should be part of a diversified investment portfolio. While they already had shares, the couple had been wanting to invest for about 10 years, but life kept getting in the way. As Simon explains, “One of the scary things about property is that it takes a big chunk of money to get started so you need to feel sure you’re doing the right thing when it comes to where to buy

STACEY WHITTING 1,178m2

2019

2

Client Since

Properties

2 Landbank

Cities

Stacey is new to property investment, recently purchasing an investment property in Queensland. While she had discussed investing with her husband Stephen, it wasn’t until he passed away unexpectedly that Stacey realised she needed to set herself up for retirement and making sure their two young adult daughters were financially secure.

“I always believed property was a sound investment. A friend recommended Custodian following a very positive experience. When I reviewed the information provided and assessed the financial return on the properties offered, it was an easy decision,” Stacey explains.

“Making decisions on my own was at first a little daunting. However, the information provided by each Custodian consultant

was transparent, consistent, easy to understand and complemented my financial goals. So far, everything Custodian have said would happen, has happened and happened on time. I am looking forward to my property being tenanted before Christmas.”

It is important for Stacey to set a positive example for her daughters. She says, “I want my girls to be financially astute, independent and have the confidence to make decisions for their future. I am proud of myself for doing this on my own. When my husband passed away, I didn’t want to be defined by or become lost in the grief that surrounded his passing, therefore the only other option was to keep moving forward. I am glad I did and know Stephen would be so proud of what we have achieved.”

Stacey is very clear about her greatest achievement, “As a parent, you always hope you raise good children, that grow into exceptional adults. Our daughters were only 15 and 19 when they lost their beautiful dad. I am so proud of their incredible strength and resilience having worked through an awful ordeal in their young lives.”

Stacey loves working and doesn’t know when

THE

Who she will retire, so for now it’s about growing her portfolio.

She explains, “Custodian has set me up for success with the purchase of my first property. I look forward to duplicating the process with a further purchase within the next welve months. I know in retirement, the income generated by my rental properties will ensure that I maintain my current lifestyle. I like the security that comes from owning my own home and knowing I can take care of my financial future without having to rely on the aged pension or becoming a burden to my girls. Once each of my daughters enters the workforce, I look forward to supporting each of them through the Custodian process.”

There is a quote that rings true for Stacey: ‘How you do anything is how you do everything.’ “I also strongly believe it is important to be true to yourself and remain present each day. like to believe that at the end of each day I’ve given back to someone. That is one of things I admire about John.

For Katherine, it’s important to be engaged in a productive and meaningful life with good relationships and giving back to the community. As for Simon, it’s about being the best dad he can be. “Our children are our immortality..” and all the other related issues. If we’d found Custodian earlier, we would have started earlier.

Custodian has given us confidence that we are buying the right investment property because they’ve done all the research. They make it so easy.”

With Custodian, Simon and Katherine have been able to confidently invest to make up for lost time, acquiring four properties in just two years. Their portfolio is geographically diverse

and located in projected growth corridors within proximity to infrastructure, shops, schools and employment opportunities.

They regard their biggest achievement as raising their four well-rounded children into the world.

When it comes to future investments and retirement plans, they would like to acquire another two or three properties and retire in five to ten years’ time. “We have a clear pathway and

hopefully we’ve got things covered. We took a conservative approach. We’ll take advantage of the tax system over the next few years then look at the debt and decide what to do. Our aim is to be independent and have a passive income,” says Simon. The network of Custodian clients is helping Simon and Katherine learn about what other people are doing to keep mind and body active during retirement.

Please note that some numbers may not reflect non-Custodian properties. They are indicative only.

37

OUR

Clients

CASSANDRA & AARON DENNING 2,893m2

MONIQUE & LUKE BERGBAUER 80,133m2

2007

6

Client Since Properties Landbank

3 Cities

Before becoming Custodians, Monique and Luke owned an investment property that had experienced good capital growth. They were interested in duplicating, but were unsure how to go about it and what to look for – until one of Monique’s colleagues recommended Custodian and they met Jennifer Fordham-Leppitsch. Together they worked through the couple’s finances, goals and their emotions behind taking that next step.

“Custodian and Jen provided us with knowledge and support to duplicate and grow,” explains Monique. “We had no idea how we could afford to buy the next investment property, let alone the portfolio we now have. Custodian encourages us to not only set financial goals but also to look at what we want to achieve in life on a personal and spiritual level.

Whenever the waters become muddied, we bring things back to our

goals which we re-set as we achieve them. That’s the difference with Custodian. We’d been approached by another investment company. It had a similar structure, but it felt like it was all about the sale and wasn’t a good fit with us. Listening to John talk about goals and giving back to society at that first seminar really resonated with us.”

Jen showed Monique and Luke a life plan and gave them confidence to take the first step. Luke says, “Even though everything is explained, with the first property, it takes a bit of getting used to. It’s not until you’re living with it that you realise: ‘We can do this.”

Monique and Luke believe their greatest achievements are their strong relationship, creating financial security for themselves through their property portfolio, and buying their dream property on acreage in 2015, where they live with their animal family. “We both dreamed of owning acreage and investing through Custodian has helped us reach that goal. We’re still pinching ourselves,” Monique says.

Luke adds, “There are both good and challenging times, but we trust the process. You have to be proactive and persistent, but with the right structure and plan in place anyone can do it. Custodian has definitely changed the way we look at retirement. We’ll continue to duplicate and reduce personal debt.

Even if we can’t retire any earlier, we’ll have the wealth to retire comfortably thanks to our portfolio.”

We had no idea how we could afford to buy the next investment property, that alone the portfolio we now have. Custodian encourages us to not only set financial goals but also to look at what we want to achieve in life on a personal and spiritual level.

38

2002

4

Client Since

Properties

3 Landbank

Cities

Cassandra is a third-generation property investor. She grew up knowing that her maternal grandparents had wealth though a property portfolio and her parents started investing with Custodian in 1999.

“After buying a couple of Custodian properties, Dad explained the model to me. He thought it would be good for me to start investing in property early and offered to help me with the deposit, by allowing me to secure the loan against the family home. That meant I could borrow all the funds I needed for my first property! At age 23, I bought my first property in Southeast Queensland,” she says, proudly.

The capital growth in that property meant that by 2003, Cassandra and Aaron were able to draw on the equity to buy their first home in Sydney without a deposit. “That first investment property set us up. We couldn’t have bought our first home without it,” Cassandra explains. “It also allowed us to travel and upgrade our house in 2010.”

By 2014, Cassandra and Aaron were ready to duplicate and by the following year they had bought another two properties. Cassandra laughs, “We thought, we’re in our late 30’s, we’d better get back on track!” Through Custodian the couple have also set up their own self-managed superannuation fund (SMSF) and have invested in property developments in Southeast Queensland. “I like the fact that we have put our super to work in property as well as shares. If we hadn’t been with Custodian, we wouldn’t have known about this kind of opportunity. What I like about John and his team is that I’ve been educated over the past 20 years. It’s not just about buying property.”

The couple consider their marriage, raising their two daughters while Cassandra progressed her career as a business analyst and building a property portfolio as their greatest achievements. “It’s important to us that we aren’t reliant on the aged pension or superannuation alone and we want to help secure our kids future,” Cassandra says.

While managing their portfolio requires them to be well organised, Cassandra says anyone on an average income can do it. “The equity in our home provides the buffer and security we need to maintain and build our portfolio,” she says. “We have about 17 years to go before retirement so we’re aiming to invest in 10 or more properties by then.

We’ll enjoy more travelling – without the kids!”

JULIO & MARGARET BUSTOS 3,584m2

2001

9

Client Since

Properties

4 Landbank

Cities

Before Julio and Margaret invested with Custodian, they had an investment property in Melbourne.

While it had experienced good capital growth, they had bought the property without any of the knowledge they later learned from Custodian.

After buying their first property, Julio looked at different investment companies to grow their wealth. He laughs, “I’ve always been a person who wants to ‘risk it to get the biscuit’.” He attended several seminars by companies promoting the sale of apartments in Melbourne and Queensland.

“They all wanted payment upfront before you got the rest of the story. A few of those companies went bust,” he says. “I went to JLF looking for ideas. I read 7 Steps and talked to the team on

the night. After talking to Margaret about it, we decided to attend a second event with JLF. It was then that Margaret was able to understand the full process and scaffolding techniques to a safe investment. We had a great night and were able to talk to other investors, getting a lot of one-on-one advice.”

Julio and Margaret sold their first investment property in Melbourne and decided to invest with Custodian. “Buying our first Custodian property in Victoria Point was the best experience,” Julio recalls. “When we saw the site, it was just fields of sugar cane. It was hard to believe what they were trying to achieve but we decided to go ahead because it was close to the beach.” Five years later they bought again.

In 2012, Julio and Margaret needed to either extensively renovate or rebuild their house, so they decided to sell their investment properties in Queensland to finance the changes to their family home. Julio says, “Custodian has helped us do a lot of things we otherwise wouldn’t have done. When we had the Victoria Point property, we holidayed in Queensland every year. The kids were young, they loved it. We’d check our properties, have a holiday and get a tax deduction! The properties changed our lives. We could go on a good holiday when we wanted, and we have a beautiful home.”

THE

Who Now that their youngest child is about to finish school, Julio and Margaret are ready to invest with Custodian again. “The way JLF taught us to invest was the right way. We know this process works. That’s why we’re coming back to it. We want to create wealth for our retirement –which is closer than it was 15 years ago!” Julio explains. “We still live the JLF philosophy. Everything Custodian taught us we’ve been able to use in other parts of our lives and has helped us make good decisions.”

Julio and Margaret agree that their greatest achievement is raising two beautiful children and ensuring they are self-sufficient. And now, they are looking to not only grow wealth for their retirement but also build a legacy for their son and daughter. “There’ll be a time when they’ll want to buy a house and we want to be able to help them using our investment properties. We have a meeting next week to get the ball rolling,” says Julio.

Please note that some numbers may not reflect non-Custodian properties. They are indicative only.

39

Ongoing Clients Events & Education

40

41

Ongoing Clients Events & Education are key attributes over 21 years

42

43

7 Steps to Wealth Book Launch 2018

44

45

Clients Events

If you want to be successful...

46

... Hang around successful people.

- J. Fitzgerald

47

COLLABORATIONS

The 7 Steps Strategy Engage, Educate and Motivate!

To be relevant in property we have to stand out. To stand out we need to truly engage our clients, educate them with relevant information to help them meet their goals and motivate them to act.

F

or more than 20 years we have been engaging, educating and motivating Australians to build wealth – from tens of thousands of Baby boomers and Gen-Xers, afraid of the prospect of retiring on the pension (which today pays just $34,000 p.a. per couple), to Millennials who are daunted by the challenges of entering the property market. We have also been working with over a thousand boys excluded from mainstream schooling, to help them be the best they can be.

Collaborating with real estate agents was obvious from the outset and agents such as Coronis, Ray White and LJ Hooker quickly realised that by joining the 7 Steps to Wealth team, they will have an advantage.

Our team works with real estate agents to educate clients about the 7 Steps Strategy – a tried, tested and proven formula for the past 21 years.

Today’s successful companies collaborate to align their assets with specialised logistics, products and services so they can achieve more. John often refers to McDonald’s partnering with Uber as a perfect example of one of the world’s biggest and best practice businesses recognising the value of using specialised logistics and services to increase their market share.

This is what we offer real estate agents

48

and their clients: specialised logistics, product knowledge, engagement and education tools that will increase sales and help thousands of people build wealth through property. For real estate agents, this is simply their unfair advantage.

Our team works with real estate agents to educate clients about the 7 Steps Strategy – a tried, tested and proven formula for the past 21 years with testimonials from Australians from all walks of life.

7 Steps to Wealth has been endorsed by three of Australia’s property billionaires; and we have delivered over 10,000 investment properties in five Australian states without one property costing any client $1 over budget.

AN EXTENSIVE & EXPERIENCED NATIONAL TEAM OF: • Specialist Research Analysts • Investment Strategists • Acquisitions Management • Finance Specialists • Marketing Specialists • Construction Management • Educational Experts • Client Services Managers

SHANE COLQUHOUN LJ HOOKER

“I have been collaborating with John to package everything he’s learned so that we, as real estate professionals, and you as property owners, can benefit. I confess that while working in the property industry for all these years, I’m not an expert on all the data, finance, tax benefits and high growth tools that John uses, so I realised that we needed to collaborate. I’m very proud to announce that LJ Hooker Nerang, Pacific Pines, Coomera and Helensvale will be collaborating with John Fitzgerald and his 7 Steps to Wealth team, to bring investors real education and the knowledge, skills and tools to turn their current property portfolio into a high earning, high cashflow, and wealth creation asset. This collaboration is a massive boon for all LJ Hooker clients and I look forward to seeing your success stories unfold.”

Joined Forces

ANDREW CORONIS CORONIS

“I’m a big believer in lifelong learning. Every year I take time out from running the Coronis business to study at Harvard Business School. I am so passionate about the benefits of self-education that I want to help others to do the same. That’s why Coronis teamed up with John Fitzgerald. Together, we provide people in Brisbane with access to an education program that shows investors and landlords how to get the best out of the property market. At Coronis, we see many property investors, but very few who own more than one or two properties. Borrowing mistakes or poor investment structures prevent people from using property to build wealth and save tax – because the wrong strategy limits compound growth.

Drawing on more than 30 years’ experience in property, John and his team show people how Custodian has helped thousands of everyday Australians to pay off their mortgage sooner, reduce their tax rate, and set themselves up for retirement or if they’ve retired, supercharge their wealth!”

ROBERT GREEN RAY WHITE ASPLEY

“For the past 20 years, we have teamed up with one of Australia’s most experienced real estate investors. We want to pass this opportunity onto you, our valued clients. What you will learn from John Fitzgerald is how his clients have been building wealth over time using his 7 Steps to Wealth Strategy. We are very excited and look forward to seeing our own clients’ portfolios grow, thanks to an education method that simply works.”

49

SEARCH FOR THE RIGHT LAND

BEHIND THE SCENES

How we do it Search for the right land It all starts with the land. We source land in super high growth areas and within councils that have a propensity for higher density rezoning to maximise our land growth per m2. We reject many sites due to frontage, drainage, topography, access, soil conditions or other impediments to future growth.

The research team is a muti-skilled group of very talented people that will identify areas that are highest in population growth and targeted for infrastructure spending, as well as key community services vital to performance of transport, schools, healthcare, etc... They live and breathe numbers, they will seek every key fact that will demonstrate we are in the right place to buy and grow.

INVESTIGATE – FINANCIAL STRATEGY

GETTING THE BEST DEAL Our Acquisitions team will also do a lot of legwork when it comes to building affordability, quality audit and rental efficiency; they coordinate quotes with up to six different builders that we trust, to ensure the best possible value and build timeframe for our clients. They also contact the architect to commission designs for the frontage as required. These two teams are intrinsic in our decision to develop or lock-in a piece of land. We have a research

and valuations team to ensure our clients have full, open and transparent disclosure.

When we design our houses we only take up on average 45% of site coverage so we are strategic in designing our houses to offer our clients the best opportunities for value add-ons in 10-20 years, as housing demographics change and the single tenancy becomes multi-occupancy.

CONSTRUCTION & PROPERTY MANAGEMENT ADVICE

1 Pick area based on research (population, jobs, infrastructure, government projects in the pipeline, etc...)

50

2

3

Pick estates and the right blocks within the estates, at the right price.

Commission tenders: Price, design, timeframe, rental estimates for each design, site coverage for future potential.

THE

How EDUCATING & GOAL SETTING

Educating & goal setting 7 Steps to wealth events We educate Australians on how to invest in property to reach their full financial potential by hosting seminars across the country, and have done so for more than 20 years. Hundreds of people every week attend our events, at no cost, to learn more about the power of land and compound growth. We use real numbers to wake our audience that failing to plan is planning to fail when it comes to our finances.

FINANCE & LEGAL TEAMS

Goals Setting session Everyone attending our events are invited to attend a free strategy session.

This is where our team of consultants turn theory into practice; they will look at their current financial situation and set their goals to plan their future, setting realistic and achievable short-term goals, while encouraging them to dream big for their future.

They help clients set their goals using our strategy workbook so that they have a better understanding of what they need in order to meet their retirement and financial goals.

For us and with our clients, everything starts with the numbers, so we ask them:

• Where are you today?

• Where are you going?

• Can we get you there?

• What are your resources?

• How long have you got?

ONGOING SUPPORT

Once you become a Custodian Client, you are invited to regular Client VIP events (and online webinars), where John provides a market update and valuable insights.

We also review every Client’s goals every year to make sure they remain on track.

51

BEHIND THE SCENES

How we do it

SEARCH FOR THE RIGHT LAND

Investigate - Financial Strategy LOOKING AT YOUR FINANCE At the end of the goals session you are invited to take the next step: the financial strategy session. This means sitting down with one of our financial strategists to dig into the numbers and assess whether you are financially able to start (or continue) investing in property. You will be able to investigate property strategies and build a plan to get you to your goals by incorporating a different perspective on land and compound growth – which is unique to our industry, and the Australian culture for that matter! Our Strategists have a wealth of experience when it comes to looking at your finance, putting numbers together to paint a picture of what the outcome will be – they help you start Step 1: Buy Land for growth.

INVESTIGATE – FINANCIAL STRATEGY

INVESTIGATE THE LAND Once your financial strategy has been established, we are able to show you house & land packages that match your investment strategy and profile. Our developments will always be located in areas of growth – where infrastructure and communities are emerging, due to population growth, migration and jobs.

They feature brand new premium builds with quality finishes, landscaped gardens and well-designed streetscape. We also provide a fixed-price turn-key contract, cost-increase assurance cover, a qualitycare program and rental income assurance.

Most importantly our employees are investors alongside our clients. You are able to sign the contract and secure that land at the end of that appointment – subject to finance being obtained to your satisfaction.

52

CONSTRUCTION & PROPERTY MANAGEMENT ADVICE

THE

How EDUCATING & GOAL SETTING

Finance and legal teams

FINANCE & LEGAL TEAMS

The next step is to really crunch the numbers and evaluate the land to see if it all stacks up for our clients. When you start the journey with us, our Investloan finance team, along with our legal team, will work their wizardry to get you to settlement. This means helping you understand your current financial situation, and guiding you through a whole lot of paperwork. This process is very time sensitive and can be overwhelming if not surrounded by the right team. This is where we come in.

Our teams will assist you through: • Working out the best structure and lender, suitable to your strategy and chosen property, and ensuring you have a comprehensive understanding of what you’re getting into.

• Applying for an equity loan, if necessary, before assisting with your application for a purchase loan from your chosen lender, decoding all the jargon and helping you make sense of every detail.

ONGOING SUPPORT

• After the loan has been approved, they walk you through the loan documents and assist with the preparation of documents needed for settlement.

• You can finally contact your solicitor and advise them of the good news — then the solicitor dives headfirst into the paperwork and arranges the settlement on your behalf.

53

BEHIND THE SCENES

How we do it

SEARCH FOR THE RIGHT LAND

Construction and Property Advice Management After land settlement, our construction team will contact our client to give them a detailed run-down on what happens next, and it goes a little something like this: • On the day of settlement, the builder will submit the client’s house plans to the relevant council for approval.

• In 6-8 weeks the client should receive council approval, then 2-3 weeks later the slab will be laid!

INVESTIGATE – FINANCIAL STRATEGY

• 2-3 weeks later the frame will go up, and 4-5 weeks later the house will be fully enclosed and locked up.

• It'll take 4-6 weeks from there to get all the internal linings and external fascia and guttering finished, ready for a coat of paint.

• 6-8 weeks later, all the fixtures and fittings will have been installed including everything from appliances and blinds — the finishing touches! When this is all done the builder will complete a final inspection to make sure everything is up to standard.

• 3-4 weeks later the client can expect their keys to be released! At this point we will have put them in touch with one of our preferred agents to secure a tenant as soon as this happens — and if our agents somehow can't get a tenant in, we'll personally pay the rent until they do (That is our Tenant Gap Cover guarantee – 12months)!

• We even take care of all the gardens for the first year after construction to ensure all the lawns, trees and plants are thoroughly established for current and future tenants.

CONSTRUCTION & PROPERTY MANAGEMENT ADVICE

54

THE

How EDUCATING & GOAL SETTING

Ongoing Support We empower our clients to manage their own properties, and provide them with full ongoing support and advice after their tenant moves in, regardless of whether they’re just starting their portfolio or have millions of dollars’ worth of properties.

Our teams behind the scenes include our lovely Reception ladies, Clients services, Accounting/Administration folks, Legal and Marketing. They all play an intrinsic role in nurturing an ongoing relationship with all of our clients, as well as offering advice on the client’s next step to building their land bank.

They will lend an ear to any concerns they have, or any bumps along the client’s journey to building wealth. They also contact existing clients to check in, and invite them to exclusive VIP events and online webinars with John and the client relationship teams.

We always appreciate the people behind the scenes, supporting other departments and keeping the wheels of the company turning. It takes a special kind of skill to always be there to assist, and we are well aware of it. What a team!

FINANCE & LEGAL TEAMS

ONGOING SUPPORT

#beallyoucanbe 55

SHARING SUCCESS

Q&A Our Coffee Afficionado

WITH GEORGE & BERNIE

George

NSW FINANCE MANAGER

What has changed since you started working in the finance industry?

A lot - policy, regulation and compliance! When I first started, we could have loans formally approved in 24 hours, including lenders mortgage approval!! Banks today are being made accountable and so are mortgage brokers. When I first started, the market was still adjusting to having mortgage brokers whereas today, the majority of loans are being written by a broker.

Top 3 pieces of advice for someone interested in property investment today?

1. Buy land. Timing is key so base your decisions on numbers and stay within the capital cities!

2. Understanding the cost per square metre of land, affordability, cashflow and tax deductibility.

3. Investments should not be based on pretty colours and what we “think” is a good investment.

Keeping close to capital cities and where the infrastructure and population is, which drives growth!

Top 3 no-no’s when it comes to borrowing?

Using the same bank on your home as your investment properties, avoid cross collateralisation & P&I repayments on investment loans 1. By using different banks you spread the risk, and by spreading the risk, you can borrow more money.

Also, by having all properties ‘stand alone’, it’s easier and cheaper to refinance or to draw equity.

2. Cross collateralisation is where you have all properties under the “one umbrella”, all properties are used to secure the loans and in most cases, the bank will take more security than needed.

Having different lenders allows clear transparency on how the loans are set up including the bank valuation result!

3. P&I is recommended on home loans because it reduces the loan. Remember, there are two types of debt, good and bad. It’s simple: bad debt is home loan/non-deductible debt Good debt is investment debt that is tax deductible!

56

How would you adapt your financial structure to purchase at maximum capacity?

Monitor and reduce living expenses, use separate lenders and in some cases, lock in your interest rate.

Like a home loan health check, a yearly budget should be encouraged, we use the tool “moneysmart” that assists our clients save and budget. With some changes in 3 months, this could significantly improve your borrowing capacity!

I’ve given the same advice on fixing for the last 20+ years, fixing is about peace of mind and knowing your repayments, not trying to beat the market. So if you can lock in close to or lower than the current variable rate, you can budget off that, as interest expense is the biggest cost of the property. All you need to do is keep the property rented and with tax benefits, that way the property should be cash flow positive.

In an ideal world, what would be the best plan of action to purchase 4 or more properties – from scratch?

Purchase as quickly as possible and when the banks say yes…

With all the noise around the banks, it is important to use lenders with higher borrowing capacities whilst in “acquisition phase”, as investors.

Timing is everything, don’t wait until there is a run on property and the markets are hot, the key is to get in before the markets move so that you maximise your growth.

Using a stand-alone finance structure is key that allows access to growth with the ability to duplicate. The wrong structure will hinder your ability, slow down this process and could take years to recover.

In summary, use the right finance structure, buy growth asset in land, right location, timing in capital cities where there is population growth and infrastructure, you can’t go wrong!

Bernie

Big Dog VIC FINANCE MANAGER

What’s changed since you started working in the finance industry?

There are constant policy changes across the board – all lenders and lending categories. For example, ‘Lo Doc’ loans, traditionally offered to people who are self-employed, are being offered to regular PAYG clients. Also, the lending criteria for mature age borrowers has really tightened up in recent times.

Red Tape – compliance has really been taken to a whole new level. Banks are now looking at reasons NOT to lend money. There are also some mainstream lenders who will not even entertain SMSF applications or investment lending pending the Loan to Value Ratio (LVR).

What are your top 3 pieces of advice for someone interested in property investment today?

1. Remove any emotion around lenders and interest rates. You may have been with the same lender for years but that doesn’t mean they’re right for you now. Focus on the correct loan structure to ensure your cashflow remains positive.

2. Use standalone where possible. Leverage off your investments to build a strong equity base.

3. Keep purchasing when your financial position suggests you can. Many people procrastinate and miss the opportunity when banking policies or servicing conditions alter. When dealing with the banks, always strike when the iron is hot.

What about top 3 no-no’s when it comes to borrowing?

1. Don’t overcommit. Keep within your budget and be disciplined with your cashflow. Control your credit card limits and personal loans.

non-deductible debt where possible. There are no tax deductions on bad debt.

3. Poor credit history or conduct raises ‘red flags’ for all lenders so no late payments or missed mortgage repayments!

How would you adapt your financial structure to purchase at maximum capacity?

Maintain a strong equity or cash savings position. Minimise your credit limits. For example, limits on credit cards, car loans and personal loans.

They drain your capacity to borrow the maximum amount to duplicate.

In an ideal world, what would be the best action plan to purchase four or more properties from scratch?

Protect your credit rating by keeping on top of credit listings and applications you’ve submitted to ensure your credit score remains positive. Reduce nondeductible debt early in your financial life. Maintain a strong equity or cash savings position from the outset. Don’t wait until it’s too late! Start early in life.

Work within a time frame to achieve results.

2. Avoid borrowing

57

OUR

People JENNIFER FORDHAM-LEPPITSCH

SOUTHERN STATES RELATIONSHIP MANAGER Jen has been with Custodian for nearly 13 years. During that time Jen has nurtured relationships with our clients from Victoria all the way to Western Australia – and if she calls you ‘hun’ don’t be offended – it’s a sign of affection.

She spends her downtime watching TV series such as the Million Dollar listing, loves theatre and catching up with family and friends. For Jen, laughter and quality time is what it’s all about! Her favourite memories over the years have been around team building activities with the main crew, from go kart racing, BE ALL YOU CAN B quad bikes , polo ponies and climbing the Sydney Harbour E? Bridge. In fact, lots of great ideas emerged from those “Pushing forwar d even when th e road times – and sometimes while consuming the occasional beverage. seems en Jen’s proudest achievement is to have perfected the art of putting strategies together for not only clients but also her loved ones. She says, “I’m humbled by how much my family and friends trust me and seek my input. I don’t think there is any greater reward than watching people become all they can be.”

Financially Jen and her family enjoy a fantastic lifestyle. Yes, there have been moments of struggle but that’s what makes the journey interesting. It created a determination not just to exceed but to excel. Jen has 10 properties plus her own home.

dless, it’s havin g the strength and patience to try every avenue to get what you want . But mostly it’ s about enjoying the jo urney – laughin g, loving and living life to fullest. Custod ian has inspired an d given me the tools to build so mething for my family and future generations. Yo u have to love that.”

DARRELL PUGH ACCOUNTS

Darrell started in 2007 in the accounts department and is still enjoying his accounting role today. He also enjoys playing touch football and is now passing his touch knowhow onto his daughter. There have been a lot of fun memories over the years but if you ask Darrell: the best one would be to see our office prankster’s prank being reversed.

“If Nick wasn’t hiding under your desk, trying to scare the living day lights out of you, he was jumping out of wheelie bins in the photocopy room. One day Nick was hiding in the waste paper security bin, ready to surprise someone. But someone grabbed the padlock off the bench, closed the lid and locked it with Nick still inside. All you could see was a pair of eyes peering out.

He was then wheeled out the front of Custodian House, down the front steps and rolled down onto the grassed area in front of everyone. Definitely one of the funniest moments here.”

Darrell’s best achievement was when he went on a 10-day trip to India to ride motorbikes through the Himalayas with John, a few staff members and some clients. “A truly amazing experience I will never forget.”

58

BE ALL YOU CAN B E? “Being the best person I can be, loving with an open heart, listen wi th empathy and sending ca lm loving and happy ener gy outwards into the world”.

GEORGE ANTONAS

NSW FINANCE MANAGER - INVESTLOAN

DORA McBAIN

CHIEF FINANCIAL OFFICER Dora has been with JLF/Custodian for 24 years! She started as Group Accountant then became Financial Controller and is now our Chief Financial Officer. Dora loves renovating and is always looking for rare pieces of furniture or fine piece of art.

She is not your typical finance person: while she likes reading a book in her spare time, she can also teach you a thing or two about hip hop. Her best memories over the years at Custodian have been the crazy Christmas parties and people she has met along the way.

Her biggest achievement has been being part of a corporation that helps others achieve success, which then translates into the company’s success. Dora is the one who brings people together in crisis and is an excellent mediator.

BE ALL YOU CAN “To be happy” .

BE?

George has been with Custodian for over 11 years. You know him as our NSW Finance Manager, but he is also our favourite barista. You can’t go into our Sydney office without ordering one of George’s speciality coffees. George loves coffee, Manchester United, South Sydney, his family, himself and the best of all, his wife Lisa. His best memory is when he sold JLF his beloved coffee machine when he started with the company. The coffee machine is still going strong and the business got a bargain! George prides himself on being able to adapt to the constant change of lending and forming good relationships with the Custodian team.

If you ask George whether he has investment properties, he says, “Duh, I am a Custodian!”

BE ALL YOU CAN B E? “Be the best ve rsion of yourse lf and treat others the way you expect to be tre ated”.

PETER BLAKELEY

PROPERTY SPECIALIST VIC Peter has worked for Custodian since the beginning. Over the past 21 years, he has worked in various roles including Consultant, Property Agent, Construction Manager and Office Manager. Based in Melbourne, Peter holds a Real Estate Sub-Agents License in Victoria and is currently a Property Specialist. He has his own portfolio of Custodian investment properties and his daughter, Georgia, has also worked for the company. When Peter is not focused on property, he lives and breathes AFL and is a passionate Collingwood supporter.

Peter has many good memories, especially Custodian Christmas parties. When it comes to his greatest achievement working at Custodian, he says, “Seeing people who bought Custodian properties 20 years ago with me and the wealth they have created since then.”

BE ALL YOU CAN B E? “Never give up .

Persistence is the key”.

59

OUR

People TRUDY DEW ADMIN

Trudy has been with us 19 years! Her roles over the years have gone from Admin Assistant, Travel & Inspections Co-ordinator, Admin and Travel Co-ordinator, Construction Assistant, Executive PA, Property Manager, Events Co-ordinator to name a few… Everyone knows Trudy for her willingness to help and reassuring smile at all times.

When she is not running her kids around, she likes going to the gym, for walks/runs, getting out in the garden and renovating her house.

There have been many fun memories over the years. One that comes to mind was when Nick climbed into the Shred-X bin in hopes to surprise a staff member – let’s just say the prank back-fired on him and he was the one who ended up surprised. Yes, it does.

“My proudest achievement is to have bought our first home and of course my children. In fact “raising my kids to be happy, healthy and kind humans is what truly drives me.”

BE ALL YOU CAN B E? “Striving to be the best version of your self so that you can be a ro le model for future gene rations”.

MELISSA SYMINGTON PAYROLL OFFICER

Melissa has been with Custodian for 11 years. She works in payroll, but she’s also active assisting in the Existing Client Services Team and organising every staff event. Mel loves anything to do with special occasions organising decorations, entertainment and all the special touches that make an event truly special. Mel is our little fairy behind every event – Christmas parties, Melbourne Cup Day, Easter Hunt, Halloween, you name it. Did we mention that Mel has a special talent for baking? And boy does she do that so well for us at Custodian! Everyone goes crazy for her Pav (from scratch!) and other yummy treats. After renovating BE ALL YOU CAN her home, Mel says, “I’m looking at investing very soon to finally follow the journey of our Custodian clients.”

BE?

“To be successfu l, making sure I am also happ y and enjoying the journey alo ng the way. I surround myself with positive and motivated people, and I learn to lik e my dislikes.”

60

Her Pav’s are amazing

INTRODUCING

Terry Nasser T PRISCILLA CAULKETT Priscilla has worked at Custodian since 2008 as Receptionist and Travel Coordinator. Just like Trudy, she provides assistance to all departments as required. Our receptionists are truly the most helpful and kind ladies we know. Cilla has always had a bit of a green thumb and enjoys a good gardening session.

She also loves to bake and going outdoors for a morning walk or a picnic.

“Every day at JLF is fun and memorable.

Working amongst other fun, happy and motivated people makes every day a fond moment”. She’s had many fun times at JLF, especially at Christmas parties, dressing up and having a little sing on stage!

A couple of her best and memorable personal achievements since starting work at JLF would have to be when she completed the Gold Coast marathon, as well as building her home with her lovely husband. She also received a Best Support Person award at one of the end of year conferences. “It was nice to be recognised for the support I give to other departments.”

erry has worked as JLF’s Licensed Real Estate Agent for 20 years. If there was one word to describe him, it would be ’perfectionist.’ Every task that he undertakes must be to a T — there is simply no other way.

“My job is to look after the Company’s interests and obligations. I’m a stickler for correct process. There have been a lot of legislative changes over the years and the devil is in the detail.” he says.

Terry’s obsession with detail when it comes to clients has everyone in awe.

Ask him anything about ANY client and he will extract that information within minutes right in front of you, from his perfect Excel Diary, created many years ago — ‘Terry’s Clients Bible,’ if you like. No wonder he is the go-to person for many of us in the business when it comes to Clients and Site inspection.

His wealth of knowledge in the industry and our clients alike is inspiring.

Another side of Terry that resonates with anyone in the office is his love for

Footy – don’t get him started on Richmond — “Please don’t” According to James, “the last four years have not been enjoyable for us; his team suddenly started winning and boy do we hear it EVERY DAY…” Terry takes his Footy very seriously, and if you find yourself losing against him you will simply hear it until the end of times…

Of course, it’s all in good spirit and Terry is very much loved around here. Don’t be fooled by his tough exterior, he has a heart of gold and is very kind to others. He is also cheeky and will tease ‘the young ones’ in the office, reminding them that his way is simply the way. - or in his own terms: “You blokes!”. The banter is constant and both parties love it.

No matter the argument Terry will always have the last word “How would ya know…” — And we wouldn’t have it any other way.

Being all you can be for Terry is being prepared for everything, and taking pride in everything that he does. Because you never know what’s coming.

BE ALL YOU CAN B E? “Being the best version of myself in all as pects of my life.

I apply this in m y everyday life by setting achi evable goals on all levels: person al, work, financial, heath and happiness.”

BE ALL YOU CAN B E? “Be honest with yourself.”

61

FIRST HOME BUYERS

#AskCory The 7 Steps to Wealth team now offers seminars for people wanting to enter the property market for the first time.

We know how to help people get into property and build wealth over time, so it just made sense to help first home buyers get their very first property.

WORK? L L A IT S E O D W HO THE PROCESS event 1. Attend the

tants. e of our consul tment with on in po be: ap to st t fir an here you w 2. Go to your e today and w ar u yo re he w Look at get there. y-step plan to create a step-b at r offices to look ent at one of ou tm st in fir po ur ap yo xt y ne st to bu 3. Go to your much will it co w od Ho go . a ns in tio u op yo your finance r week? Are pe st co it ill ill w w much w much you proper ty? How also discuss ho ill w e W e ? th ce finan ant and position to get home buyer gr sit less the first po de e th r fo need ive. builder’s incent ey ey is dead mon Why – rent mon to ing compared ed d cons of build What – pros an ar tments, townhouses and establish ng ap yi bu

housing

options. ges proper ty ka ac p d n and la it located? e? Where is d new house lik an ok br lo at se k 4. Loo -new hou your brand invest in?

What does good area to a on ti ca lo at Why is th

For more: #AskCory coryp@investloan.com.au

I’m so glad we came and saw you, It’s helped me take our savings more seriously and put us on the road to buying our first house. Thank you very much and thanks for being the dose of reality we needed.

ROWENA - QLD

62

FIRST HOME BUYERS TIPS 1. Start NOW: the property market waits for no one. If you are in a position to do it, do it now.

have built enough equity in their own home to be able to help you with a deposit.

There’s no shame in asking for help.

2. Budget: I know it’s a dirty word. Know where your money is going so you can make small improvements every week. I recommend downloading MyGov’s simple budget app and start tracking where your money goes.

7. Be open minded when it comes to the location of your first property. Focus on growth areas and tax free income when it comes to selling. What’s important is getting into the market. Your first home may not be in your perfect location, but ultimately it will help you get there with its capital growth over a few years.

3. Your savings: pay yourself before you pay anyone else. Put 10 per cent of your earnings towards your savings. If not, put that 10 per cent towards reducing debt.

4. Save for your deposit: open a separate account to put money towards your deposit. Choose an account with a different bank so you can’t access the money easily and look for a bank that offers no account keeping fees and a higher interest rate.

5. Lender Mortgage Insurance (LMI): another dirty word. Use LMI to your advantage to get into the market today before prices rise. For me LMI means Lead to More Investments!

someone share the cost with you – by renting a part of the house or a room within that home.

10. Build your A-team: mortgage broker, real estate agent, financial planner, solicitor and accountant. Get help from the right professionals – you can’t do it on your own.

8. If you have the right property, it’s not as expensive as you might think. That is why we recommend brand new properties because there is less risk of maintenance expenses and you have all your building guarantees.

9. Having your own home might enable you to have

6. If your parents are in a good financial position, ask them for help. They may

63

THE FITZYS

A Family Affair John Fitzgerald’s daughter Alex and Nephew James have been working with JLF for more than 7 years, but was this always the careers they thought they would have? What about their plans for the future of the company? And what’s it like, working with family? We take a look at the past 7 years and hear about their experiences in their own words.

COMING INTO THE FOLD Operating a business with family has its own unique benefits and drawbacks, and having to switch gears between professional and personal can be tricky. At one point Alex demonstrates this when she refers to her father as ‘John,’ before deftly correcting herself and continuing.

She recalls a time in her childhood when he was undefeated at Monopoly, due in no small part to his winning property strategy of buying every property he landed on – James chimes in here, laughing: “He never sells!” At first, Alex was paid pocket money to research suburbs on school holidays, but it wasn’t until 2012, at a crucial turning point in her career, that she decided to embrace a career with Custodian.

“In 2012, Dad and I were talking about my next career move. At the time, I was working casually for Channel 10 in their entertainment department. I was enjoying working and learning. It wasn’t something I planned but it wasn’t out of the question either. After a few weeks, I realised I loved it. Things I’d seen growing up started falling to place. That excited me, and I enjoyed meeting the clients. Their love for Dad and the company was exciting and infectious.”

She bought her first property in 2013 and since then has added two more to her budding portfolio – but nobody offers an update on who wins Monopoly now…

James remembers, like Alex, having little understanding of what John did 64

for a living – he and Alex were too busy doing what young people do. He walked his own road for a time, earning degrees in law and accounting that landed him a job with a local firm. At most, he was thinking he might venture down the path of property law rather than litigation when John offered him 2 weeks’ worth of work experience.

“I followed John around, I observed him as an investor, as the CEO, and when speaking to clients. I noticed that there was something different about the people I met – … in hindsight I realise they were all financially independent and understood about working smarter not harder.”

James worked in the legal team for some time, then as John’s executive assistant, before seizing the opportunity to head construction in Brisbane; he then moved to acquisitions and research and is now the general manager. Alex has ascended the ladder in a similar whirlwind of success, navigating steep learning curves and ”having a go” when John kept pushing her to do more and explore new things within the business.

CUSTODIANS OF A LEGACY At seeing how far his nephew and daughter have progressed, John admits, “Getting James and Alex to join the business was the natural succession plan. Working with them on a daily basis is great. It motivates me and has given me a new lease on life.

ABOVE: Alex with one of her investment properties.

RIGHT: James in front of his dream home.

ABOVE: Kane and Alex - John's son and daughter in their teenage years.

BELOW: James, Alex and John at Nerang HQ.

true strength.

“I am so happy that Alex and James are part of my management team. The foundation of our business is Custodian and Toogoolawa. Both of them will still be relevant in 100 years’ time. Custodian House sits on 3 hectares of land that I bought 21 years ago. We’re here for the long-term, just as Toogoolawa, and will be operating well into the future.”

A DIFFERENT PERSPECTIVE

Working with them tests me, pushes me and keeps me relevant – and it keeps me young. I also get to impart the importance of being a part of something that’s bigger than all of us.”

This sense of legacy runs right through the entire structure of the company, extending from John’s own wishes for his family to that of his clients, as well as the boys at Toogoolawa that have fallen through the cracks. This is also what the concept of the ‘Land Bank’ comes from – working to build a property portfolio to create a better future for the next generation. It’s a primal instinct that people have, and to use it for others is a symbol of

John has never forgotten about his mentors, who escaped the terror of the Nazi regime during the Second World War. “After what they experienced, being alive is a bonus. They wake up seeing abundance and opportunity rather than what they don’t have. That’s our organisation. That’s what makes us different. We know there’s tragedy, fear and scarcity in the world, but there’s also great opportunity. We look for that and we are grateful for it.”

This positive-focused mindset is his edge, and it’s what he imparts onto his clients and, of course, his family. He laughs as he recounts his struggle to encourage James to purchase his first house. He was diligently procrastinating, lost in the minutiae of the sale without taking the final step until John said to him, “You need to unlearn everything you’ve learned at Uni and buy this house.” He sealed the deal and said it was the best thing he’d ever done, as he now owns four properties.

65

THE FITZYS

A Family Affair ABOVE: James, Alex and John at the Urban Land Institute conference in USA.

ACQUISITIONS AND …AIRHORNS? Alex insists that it isn’t all work, and that they take every available opportunity to have fun.

James is quick to point out that she is actually ‘the chief fun officer and prankster.’

“She has an airhorn — in fact, one in every office. She finds a way of luring her unsuspecting victims into a room, while she has a camera running, to capture the moment when they lose every bit of security they have.”

They all share a laugh, picturing too many frightened expressions to recount. Alex doesn’t deny it — it’s all in good fun, after all.

James continues, “We love to joke around, but we also have fun working with John.

Some days he comes into the office saying ‘Right, now we’re going to do this.’ It could be something he wants us to do personally or something to explore within the business. …

We go on crazy journeys where we think he’s insane, but then it seems to pan out. He bends reality to see where we’re going. … Being around John makes life interesting. We all enjoy seeing him in action.”

AN EVOLVING MODEL Collaboration is, to John, the key to Custodian’s continuing innovation and success. Not just that of the employees that turn the cogs of this precision machine, but between the real estate industry and property developers.

“We realised we should be leveraging the great relationships with real estate agents we’ve known and worked with for a very long time. They manage rental properties for us and we do coaching for them but we’d never sat down to work out how we could collaborate.

That started the 7 Steps model. It’s proving to 66

be a phenomenal success for us both.”

James remembers how it started: “The first agent to come on board was Ray White Aspley, who had been working with John for more than 20 years. Managing multiple properties for our clients, they knew we were doing something different and they were keen to learn.”

Reflecting on the impact of this company, John considers what it is about Custodian that remains so relevant to Australians today. For him, it all comes down to how too many people are retiring on the pension, spending the last decades of their lives stressing about finances instead of living their lives to the fullest. The pension is barely above the poverty line and too many people over the age of 55 still have a mortgage that they’re trying to pay off.

The Fitzys agree that there is an achievable solution within their grasp that too few are taking advantage of.

John lays down the facts: “They do two things wrong: their thinking and habits in relation to wealth are incorrect. We raise awareness about wealth. Building wealth is a different way of thinking and I know that because only 0.3% of Australians are wealthy.

By following a proven strategy and repeating it, everyday Australians can do it.”

Having done it for herself, Alex agrees, “I believe that, fundamentally, we teach Australians to think differently. We take a holistic approach. It’s not just about investing, but thinking differently about your own life. To be the best you can be. When I go to a client breakfast or dinner, I feel like I’m part of a group of very special people.”

THE 7TH YEAR John, James and Alex Fitzgerald have successfully blurred the lines between being family and work colleagues, and seeing how comfortable they are just talking with each other is infectious. It’s this unique dynamic that has charmed hundreds of clients all over the country, fostering a property investment empire and a powerful legacy of education.

“What we do at Custodian and Toogoolawa is exactly the same thing. It’s about a way of thinking, and creating certain habits. Success is repetition but so is failure. No matter what you’ve been served up in life, in order to change you need to start with your thinking.

Thoughts will translate to words, then actions and then habits.” — take a guess at which Fitzgerald said this!

She has an airhorn — in fact, one in every office. She finds a way of luring her unsuspecting victims into a room, while she has a camera running, to capture the moment when they lose every bit of security they have.”

67

Notes

68

Notes

69

70

OUR

Offices

5

CITIES

320 21

DEVELOPMENTS

YEARS

+ 192

DEVELOPMENTS

Brisbane / Gold Coast

16

DEVELOPMENTS

4

DEVELOPMENTS

23

DEVELOPMENTS

Perth Adelaide

85

Sydney

DEVELOPMENTS

Melbourne

HEAD OFFICE

MELBOURNE OFFICE

SYDNEY OFFICE

BRISBANE OFFICE

Custodian House 832 Southport Nerang Road Nerang QLD 4211

Level 2/100 Dorcas Street Building E, Kings Garden South Melbourne VIC 3205

Suite 302, Level 3 213-219 Miller Street North Sydney NSW 2060

Corporate House - No. 28, Level 8, 757 Ann Street, Fortitude Valley QLD 4006

Phone: 1800 174 999

Phone: (03) 9557 8200

Phone: (02) 8904 0555

TOLL FREE: 1800 778 377

jlf.com.au

sevenstepstowealth.com

custodian.com.au

facebook.com/custodianHQ and facebook.com/sevenstepstowealth @7stepstowealth 71

AUSTRALIAN BILLIONAIRES RECOMMEND

“EVERY AUSTRALIAN MUST READ THIS BOOK.” BOB ELL, TOP 100 BRW BILLIONAIRE

“BEST BOOK...SHOULD BE TAUGHT IN SCHOOLS.” NEV PASK, TOP 100 BRW BILLIONAIRE

“COMPELLING INSIGHTS.” MAHA SINATHAMBY, TOP 100 BRW BILLIONAIRE

“Success is Repetition” John L. Fitzgerald

sevenstepstowealth.com 72