Diversity and determination the keys to Kumar’s rapid rise


Sunil Kumar’s journey from overwhelmed migrant in his early 20s to founding father of a fast-growing actual property company, creator of a information to constructing a enterprise and proprietor of a near-$10 million property portfolio is a formidable story of determination, mental rigour and calculated risk-taking.

Sunil Kumar’s journey from overwhelmed migrant in his early 20s to founding father of a fast-growing actual property company, creator of a information to constructing a enterprise and proprietor of a near-$10 million property portfolio is a formidable story of determination, mental rigour and calculated risk-taking.

In 2004, Sunil Kumar arrived in Australia with solely the most simple data of the English language, however he didn’t let that cease him from harbouring some pretty audacious ambitions.

And whereas the Indian migrant described shifting to a brand new nation accompanied by no pals or household as a frightening expertise, he mentioned the challenges related to organising a brand new life had been crucially vital in shaping what would develop into his future success.

His first job in Australia was what many would take into account to be amongst the most troublesome and least rewarding occupations – Mr Kumar was going door-to-door and promoting telephones.

“It was hard work, tiring, but I never gave up and to be honest, I think it is those days of sweat and toil that laid the foundation for dreaming big and that taught me perseverance,” Mr Kumar mentioned.

Those large goals have now become a lavish actuality for Mr Kumar, who manages a profitable Melbourne actual property company with greater than 100 workers, whereas his private property portfolio is value shut to $10 million.

His memoir, From the Ground Up: 7 Principles for Building a Business Fast, was printed earlier this month.

Like his arrival in Australia, Mr Kumar’s Reliance Real Estate began small in 2011, with simply two staff – an not noticeable starting for what’s now amongst Victoria’s fastest-growing companies. 

Just one yr prior, Mr Kumar was working as an actual property agent for an additional agency and had made his first foray into property investing, shopping for a home and land package deal that was a part of a growth he was promoting on behalf of one in all his shoppers.

“I sold five properties in that street when the government grant incentive was $32,000, and I bought one directly from my builder client,” he mentioned.

“I was single at the time and I had a broker working with me who financed homes and he financed this purchase for me from NAB.”

He has since purchased and offered a number of properties, together with main industrial initiatives and property developments, culminating in his present portfolio of status properties.

The jewel of his portfolio is a $6.5 million property in Tarneit, in Melbourne’s City of Wyndham, whereas inside the identical native authorities authority are two properties in Point Cook, value $2 million and $1.2 million. The latter is his residence.

While his present residential holdings could counsel in any other case, Mr Kumar mentioned diversification was a key to profitable investing.

“To reach this point, I have personally invested in residential, commercial and long-term land holdings and I think especially at this time, we know it’s very important not to put all our eggs in one basket,” he mentioned. 

“One of my shoppers acquired 22 residential properties however land tax, council charges and different upkeep prices elevated and destructive gearing modified and actually affected him adversely.  

“He slowly offered 16 of these properties and invested in industrial properties to get the mounted return.  

“I like to recommend investing in all completely different areas, with residential and industrial the most typical and safe. 

“Really think of the long-term plan; are you buying for capital growth or rental return and only once you’re clear on the desired outcome do you make an informed decision.” 

Mr Kumar mentioned his personal technique had targeted on industrial property to gather robust rental returns whereas protecting legal responsibility to a minimal.  

Capital development investments in residential had carried out strongly, whereas a few main growth websites generated a excessive fee of return on funding and capital development at the identical time. 

He has tried quite a lot of lenders and sees diversification as equally vital with credit score as it’s choosing funding websites.  

“When investing in residential and commercial, the four major banks have supported my purchases but I once invested in a major project requiring a long-term loan holding and had to go for a second-tier lender,” Mr Kumar mentioned. 

“For one other of my short-term initiatives we had to get finance from a non-public lender, which may be costly. 

“My personal preference is not to finance all properties from one bank and to make sure you have a couple of different lenders.” 

Back from the brink 

A pure development of his actual property company was beginning Funding Force, which gives a platform to Reliance’s brokers and a financial service to shoppers.  

“Innovative, savvy brokers with outstanding long-term client relationships means higher traffic and visibility for both brands and it was driven by demand from our clients,” he mentioned. 

“We were referring our clients to finance services, and they were not getting a good experience.” 

All of his personal investments are actually managed via Funding Force. 

“They make all the decisions about leasing and renting, renewals — I hardly get involved.” 

The path to monetary safety and enterprise success has not all the time been simple, with 2012 seeing him on the brink of closing the enterprise as market situations worsened.  

“That was a difficult year — I was faced with the decision to give up my company and the only thing that got me through was the support of my family and the positive influence of my peer group,” Mr Kumar mentioned. 

Further private sacrifices had to be made when investing in a serious land holding. 

“I had to make considerable lifestyle changes, refrained from spending money on cars or other luxuries, and also had to pull some money away from the business, but it ultimately paid off many times over,” he mentioned. 

There are, in fact, further funding plans in the pipeline. 

“There are two major projects we are developing; one is a residential subdivision of 82 lots that we will subdivide and sell, keeping at least 10 per cent for the rental return, and the other is a major commercial office site that we will also develop, sell and lease,” he mentioned. 

Starting small 

Buoyed by his personal expertise in beginning small and constructing comparatively shortly, Mr Kumar mentioned these trying to make a begin in property investing ought to start modestly. 

“If there are limitations with money, start small but at least make a start to the journey,” he mentioned. 

“I purchased my first house for $300,000 and inside three years had refinanced with cheaper charges and raised $90,000 from fairness, which I utilized in my enterprise to develop and increase.  

“If I didn’t make investments that unique buy quantity, I don’t suppose I might have saved $30,000 a yr for 3 years.  

“It’s a real advantage, and a no brainer decision to buy and let property grow.”


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