I’m a high school dropout who now owns more than 70 homes worth $43million… these are the two simple tricks that made me a property juggernaut

A high school dropout has revealed how he was able to amass a massive property portolio worth $43million in a little more than 10 years. 

Sam Gordon, 34, was driven to succeed by his difficult job of moving bags of feed around drought-stricken farms in NSW’s Southern Highlands.

He started his impressive portfolio at just 19-years-old with a two-bedroom unit in Wollongong purchased in 2009.

A clever two-part purchasing strategy meant Mr Gordon was able to continuing buying homes until he finally quit his farm job at 28.

He now has an annual passive income of about $2million, with 60 per cent of his portfolio value held in equity, and just signed the contracts for his 76th property.

Mr Gordon explained his first key to success was buying properties in high rental return areas for below market value by taking on homes ‘most people wouldn’t touch’.

‘They’re usually really rundown,’ he told realestate.com.au. 

‘Banks often won’t lend on them because they’re uninhabitable. I buy them in cash or with really low debt loans and renovate.

Mr Gordon (pictured) earns $2million a year in passive income and just signed the contracts for his 76th property

‘The trick then is to take out the equity I’ve created by refinancing the loan and using that money for the next project.’

The second key part of Mr Gordon’s strategy is only buying in areas where the potential rent is well above his mortgage repayments.

He would put a lot of effort into researching high-value and growing areas. 

‘What I found was a game change when it came to getting loans was being a rentvester,’ he said.

‘Banks look at loans on your residence as a liability. It limits what you can borrow. If you’re renting, it’s a lot easier to build up your investments faster.’

Mr Gordon began saving for his property when he was just 16-years-old and earning $38,000 to help on farms. 

He recalled hauling ‘putrid’ smelling feed around in 40C heat admitting he had no intention of doing it for the rest of his life.

‘All my free time I put into renovating properties. That was basically my holidays,’ he said.

Mr Gordon began saving for his property when he was just 16-years-old and earning $38,000 to help on farms

After renovating the unit at Wollongong himself, Mr Gordon was able to use the equity on the property to buy another – a unit in Moss Vale.

He continued to use this strategy of renovating and improving properties himself and using the equity to buy another to build the massive portfolio he has today.

However, Mr Gordon doesn’t just take on any home as he prefers his investments to be free of structural issues.

He highlighted a difficult project in Perth where he had to replace the ceiling over the kitchen.

Luckily the step out of his comfort zone paid off with the property doubling in value, significantly improving his cash flow for future renovations. 

Last year was one of Mr Gordon’s busiest years as skyrocketing interest rates meant there were less buyers to compete with. 

‘I think if you’re clear about what you want to accomplish with property you can start forming strategies that can get you there,’ he said.