How did this guy build a $40 million dollar portfolio?

The inspiring story of Johnson Tran

In the article it says he has launched 4 developments in Melbourne, how has he been able to build such a large portfolio from only these?

 

There's got to be more to this story. Without details, its very hard to work out how he went from one house to financing a dev site with 12 apartments on it and so on.

 

Didn't you read the article? Hard work and determination! *Sarcasm implied
I think he had a some pretty well paid jobs which may have meant he saved a bunch which enabled him to start his development company. He may have built $40M worth of property, nothing in there says he currently OWNs $40M worth of property. Unless I missed something?

 

Would be good if there are more details on the financing side of things but they are probably different now.

 

Not your average developer: The family legacy that saw Johnson Tran build a $50m portfolio

Another article a few months later "With a portfolio worth $50 million, property developer Johnson Tran is the textbook definition of success… "

 

not that special.
harry would say xD.

im jealous because when i was 29 im not worth 40-50m.

sounds more legit than nathan.

hope his next development dont get stuck under the current market/finance situation.
because his website shows the value from $14m to blank to 103 room hotel in doncaster to $110m.. and the number of times he use the word funding and finance is worrying.

seems like a quick jump in 2 years.

who knows.. he might be the next harry, if he is this successful at 29

 

This article tells a lot more about him, much better...

I really like... " If people don’t like you, they won’t do business with you. If no-one does business with you, there is no business."

 

I think the 12 apartment/12 townhouse deals were relatively small (around $4.8 - $5 mill in value) for a development of that size. So guess his high job income and savings would have helped with the finance.

 

Or his investment banking background he learned how the numbers work...ie get 60-70% of commercial lending...get balance from investor contacts he made while working in investment banking...throw in some cash he saved from working some 100 hr weeks in investment banking. Realise profit on development, rinse and repeat in to bigger deals.

There was another young guy that use to frequent the forum that started in investment banking and left the rat race in his 30's or younger.

 

Inspirational. Good on him. Commitment and hard work, starting from his university studies and the jobs he secured and then branching out into developments.

 

I might be wrong but I think that was Deltaberry on the Somersoft forum and Omnidragon here on Property Chat.

 

Still I have my original question, with 4 developments launched how is that able to fund a $40/50 million portfolio?

 

Probably developed 40m worth

 

I imagine (guessing) over and above whatever direct developments he's does himself with his background and contacts he's nurtured, he's probably become a connector and deal-maker taking commissions and doing joint ventures and so forth. There's more than one way to makemoney in that game.

Nevertheless, truly inspirational. He did have one thing in his favour............. a strong "why?" Child of immigrant parents escaping communism and then raised by a single mother. No comfort zone entitlement in his environment.

 

Hard to know how much profit his company has made from the projects completed so far, nor how much he had made from his investment banking job. I suspect if your question was easy to answer more people would be doing it. He's smarter than your average bear that's for sure

 

i think its a really bad generalization he had a tough up bringing thats why he is more motivated.

people who grow up in a "good/positive" environment tend to have more success than in negative/tough enviroments.

i would say despite his tough up bringing, he done well than most people that is in a better environment than him.

investment bankers dont make that much money, unless your a portfolio manager or above. they make more than your avg joe, but not in the figures you have in your head,

they make way more playing the stock market themselves.
portfolio managers and above's have bonuses and share options (if its an option), the rest its just a paying job with small incentives.

in wall street their starting pay is only $75k a year + bonuses, thats goes up to 100k if you hit top top target,

fresh grad in silicon valley earns $150k.

i doubt as a "banker" you get more in australia than wall street, except portfolio managers and above positions which is then depends how big your portfolio is.


but the skills and his experiences would have definitely helped him,but i think he is also a good calculator of risk, which helps him allot !

 

He says "Investment banking was one of the highest paying jobs coming out of university" -
Following his time as an investment banker, he moved to Future Fund, Australia’s sovereign wealth fund, where he helped oversee $15 billion worth of global private equity funds. - pretty certain his wage was above average and most likely he invested in the markets himself as well.

 

I miss reading his contributions. Really a world apart.

I met a mutual acquaintance of ours in Melbourne for coffee once. I was talking about my 3 properties, he was talking about his 3 properties.

Turns out mine were $300k, his were $3M each.

These guys were super savvy, and not run of the mill. They come from very well connected families.

I have similar friends and aquaintances here. One built a legit shopping centre, the other built a business from scratch and was bought out by Ali Baba for $22M. All before 30.

They grew up thinking a bigger game, and had the grit to leverage their knowledge and connections till fruition.

 

the size of the portfolio means nothing if your just an analyst. analyst pay are pretty common, and at $100k entry lvl in australia is pretty high no ?i did mention he would earn allot via trading him self.


and if he is the portfolio manager,
he would have 40-50m easy without breaking sweat, if he is managing a 15b fund.

 

Was he an analyst? I must've missed that part - there's more to this story I'm sure.