Commercial Property in Your 20s: How Max Built 5 Properties

Most people in their 20s want to set themselves up. Max wants to retire his parents.

By his early 20s he already holds:

• 2 residential properties

• 3 commercial properties

• A new industrial property in Noosa, QLD

• A clear target of at least $125,000 in annual passive cash flow by 30

He is not aiming to “be comfortable one day”. He is aiming to change his family’s life in one decade.

This is how he is doing it, and how investors in their 20s, 30s, 40s and beyond can apply the same principles.

What Happened – Max’s Journey In A Snapshot

From 14 Year Old Crew Member To Property Investor

• Started work at McDonald’s at 14

• Stayed for 7 years, progressing through the ranks and completing head office training in Sydney

• Used that income to save aggressively rather than inflate lifestyle

• By 18 had around $60,000 saved and strong, stable income

Instead of going to university, he focused on:

• Keeping borrowing capacity high

• Taking on more responsibility at work

• Learning about money, interest, and investing

Early Money Lessons

• First spark was compound interest on a small savings balance

• Saw $20 to $50 of interest in a year and linked it to “hours of work” at $14 per hour

• Realised inflation eroded those gains

• Tested shares as a stepping stone

• Eventually concluded property, with leverage, was the better fit for his goals

Education came from:

• Podcasts

• Books

• Self study on finance and investing

Family Influence And Money Mindset

A big influence was his mum. She:

• Ran open, honest money conversations at the dinner table

• Used a handwritten budget book and tracked every dollar

• Modelled conservative money management and “survivability first” thinking

That shaped Max’s own style:

• Strong focus on budgeting

• Conservative approach to risk at the start

• Respect for cash flow and buffers

Building The First Portfolio

While still at McDonald’s, Max:

• Saved aggressively through his late teens

• Bought two residential properties

• Added two commercial properties

• Built a portfolio with original purchase values around the $1 million mark

• Later used equity from the residential properties to help fund further moves

This portfolio and track record helped him transition to a career with InvestorKit, where he now works in property full time.

Key Findings – The Noosa Industrial Deal And Strategy Behind It

The New Industrial Asset

Max’s latest purchase is an industrial property in Noosa, QLD. Key features:

• Near new build, less than one year old

• Industrial asset leased to an industrial style tenant who builds small homes in the warehouse

• Around 5 percent net yield

• Tenant covers the majority of outgoings

• One of three units in a tightly held industrial precinct

On the tenant side:

• High utilisation of the site

• 7 to 8 staff on the floor

• Turns over small homes roughly every 6 weeks

• Each build worth around $250,000

This signals:

• Active, healthy business operations

• Strong revenue per cycle

• Low risk of “ghost” tenancy where the site is underused

Lease Quality And Security

Important elements of the lease included:

• Bank guarantee of three months’ rent

• Director’s guarantee

• No pre-set option to renew

Many investors assume options are always positive. In reality, an option is a right for the tenant, not the landlord. If a weak tenant holds options, the landlord can be locked into poor terms.

In Max’s case:

• The absence of an automatic option gives flexibility at expiry

• He and his team can renegotiate lease length and terms based on market conditions

• If the tenant remains strong, they can be offered an extension on better, updated terms

Diversification By Location And Asset Type

Max’s plan to 30 is built on deliberate diversification:

• Current holdings are heavily weighted to South Australia

• This new purchase adds Queensland exposure

• Next phase aims to add Victoria, with a focus on regional VIC

• Asset mix to date includes:

  • Residential houses

  • Retail shopfronts

  • Industrial

  • Planned move into medical

The goal is a portfolio that is:

• Spread across states

• Spread across tenant types

• Spread across asset classes

This supports more stable income and lowers exposure to localised shocks.

What Keeps Max Locked In – Focus In A Distracted Era

In your 20s today you face:

• More digital distractions than any previous generation

• More asset classes and “opportunities” than ever

• More conflicting advice from family and social media

Max stays focused by asking one repeated question.

“What is likely to give me the best return with acceptable risk?”

This led him to:

• Test shares, then move away due to lack of leverage

• Focus on property, where bank lending multiplies returns on equity

• Prioritise quality commercial assets over speculative plays

• Stick to a written strategy anchored to his PPF goals, personal, professional, financial

He also leans heavily on mentors:

• Early business mentors at McDonald’s running multi million dollar operations

• Senior team members at InvestorKit like Arjun and Chris

• Mortgage specialists who know commercial lending policies

He is not “doing it alone”, he is stacking guidance.

Action Steps – How To Apply These Principles To Your Own Portfolio

Whether you are in your 20s or several decades ahead, the framework still works.

1. Define A Clear Cash Flow Target And Timeframe

• Pick a dollar figure in annual passive income that would change your life or your family’s life

• Set a time horizon that is ambitious but realistic

• Tie that target to real goals, such as retiring parents, changing careers, or scaling back work

2. Audit Your Savings Rate

• Calculate the percentage of your income you can realistically save

• If you are in a fixed salary role, target 25 to 40 percent as a strong range

• If you have performance based income, challenge yourself to push higher when bonuses or commissions land

• Automate the transfer of surplus into separate accounts so lifestyle creep does not erode your capacity

3. Build A Written Strategy, Not A Collection Of Deals

Map out:

• Target states and cities

• Preferred asset types, residential and commercial

• Sequence of purchases, for example:

  • Early stage residential to grow equity

  • Transition into quality commercial for cash flow

• Risk settings, such as maximum loan to value ratio and minimum cash buffers

4. Decide If Commercial Property Fits Your Next Move

Consider if you:

• Have stable income and borrowing capacity

• Can fund a larger deposit, noting that 70 percent lending is common, with some 80 percent options emerging via specialist lenders

• Value higher net yields and stronger depreciation

• Want diversified tenant risk beyond just residential

If yes, commercial can accelerate your path to your cash flow target.

5. Surround Yourself With The Right Team

As deal size grows, so does the impact of mistakes.You may need:

• A data led buyers agent focused on national markets and commercial as well as residential

• A commercial aware mortgage broker

• An accountant who understands trust and company structures, and commercial depreciation

• Mentors or peers already doing what you want to do

6. Align Every Decision To Your “Why”

Max’s why is clear. Retire his parents, then support his siblings and create long term freedom.Your why may be different, but it needs to be just as specific.

Before each purchase, ask:

• Does this asset move me closer to the target income by my deadline

• Does it fit my diversification plan

• Does it respect my risk settings

If the answer is no, keep searching.

Build Your Own High Growth, High Cash Flow Plan

Max’s story shows what is possible when:

• Your goals are clear

• Your savings rate is strong

• Your strategy uses both residential and commercial assets

• You have an expert team helping you choose the right properties, in the right markets, at the right time

To explore how a similar approach could work for you, book a free discovery call with InvestorKit.

On the call, the team will:

• Clarify your personal, professional, and financial goals

• Map out a tailored portfolio roadmap across residential and commercial

• Show you how to move from where you are today to your target income figure, step by step

Start designing the portfolio that can change your life and the lives of those you care about. Book your discovery call with InvestorKit today.