1

TITLE

: HOW TO USE PROPERTY AND BUILD A RM20,000 MONTHLY

RETIREMENT INCOME?

Salam and hello there. My name is Faizul Ridzuan, and I guess most of you do not know
me yet. Allow me to introduce myself. Today, Im known as per the following:

Author of the book WTF? 23 Properties by 30, which sold over 60,000 copies
to date.

Ive been featured in Astro, TV1, TV2, TV3, BFM radio, and in various property
publication like Focus Malaysia, Property Insight, Home Finder, NST, The Star,
The Edge and many more.

Founder of Sarjana Hartanah, a property education program that is widely

regarded as Malaysias best-value-for-money property education program. We
have been educating more than 2000 students since 2013.

CEO and Founder of FAR Capital Sdn Bhd, an independant property advisory
firm that advise people where and what property they should be buying to
achieve their financial objectives.

Bought over 40 properties to date. Bought over 10 properties in 2015-2016

alone. 5 of them are now fully paid and targeting to fully pay off all these
properties in the next 10 years, and ensure that I can fully retire at 45 with
approximately RM50,000 rental income per month.

Was able to resign from a RM18,000 per month employment at 32 years old,
when working for a Fortune 500 MNC from US.

Recently bought the recent edition Porsche Cayenne S before I reached 35th
birthday, again for free.

My firm and I was invited to present a paper on youth housing in 2014, in front
of the current Prime Minister of Malaysia and his cabinet as part of the 2015
Budget initiative. And I was lucky enough to be invited after that to have lunch
with the Prime Minister and his cabinets (although we didnt get to discuss
about 1MDB during that lunch)

Firstly, I apologies if this intro sounded pretty baggie or sounds like showing off.

The reality is that most of us only wants to take advise from people that they deem as
successful so I hope this little introduction give you a glimpse of this unknown, unheard
of author.

Personally, I dont consider myself as successful yet (perhaps until I get my RM50,000
passive income per month) but at 34 today, I live a very decent life.

And I got this all simply because I started investing in properties since 2005 and the
investments I made has done well enough to allow me to quit my high paying job,
pursue my passion, live in my dream house, and drive a decent car today.

So now that we get the pleasantries out of the way, lets us begin shall we?

WHY AM I SHARING THIS METHOD VIA THIS EBOOK, FOR FREE??

Ive done almost a thousand of 1-ON-1 consulting sessions in the last 24 months, and
Ive spoken to many more during property events, Sarjana Hartanah, and webinars.

Amazingly, I found that people are still very sceptical that they can actually live very
decently if they invest wisely in properties. They often told me that I can do what I do
and Im making the kind of money that I make today because I was special, and I have a
gift.

Is there anything special about me? You can decide once you learn my
background?

Truth to be told, Im actually very average. I was born and grew up in Sentul, which was
largely known as a gangster place.

I cant recall seeing anyone rich there and up to 10 years ago, you can hardly see latest
BMW or Mercedes around Sentul, ever.

The schools were consistent amongst the bottom 10 performing schools in the whole of
KL. Being born and growing in Sentul means you are surrounded by low income group,
so the topic of money and investments were a complete alien.

I dont have rich parents, and never had inheritance money or donation coming my way.

Ive been working since I was 13 when I help my dad set up his carwash in Sentul after
he was let go during the 1997/1998 Asian financial crisis. Did OK during SPM despite

ponteng kelas for close to 100-days that year. I studied software engineering in Uni
Malaya and graduated with a degree in Software Engineering (which is pretty useless
when it comes to investing).

I had to work part-time at Starbucks for almost 5 years throughout my uni days because
I needed pocket money to pay for my scooter, that I use to commute everyday from
school to work then home.

So for those who were wondering if I had the privilege of a nice silver-spoon life
growing up, I was fortunate enough to never had one.

Otherwise I might be that annoying, spoiled, pompous, douchebag prancing around in a

nice car like owns the world despite never worked a day in his life.

I prefer to get what I want through dedication/dedikasi, instead of daddy-kasi.

Once I graduated, I worked as a software engineer for while and I dont even work in the
property industry.

I couldnt last 1 year a software engineer, when I decided I dont want to talk to
computers anymore (programmers write codes to tell computers what to do). So I quit
my job to become a street salesman, selling credit cards.

Did okay there, and was offered to take up a job as a management trainee in a foreign
bank. Bought my 1st property here. Got promoted to a manager in a year, and then 2
years later joined a US-based company as a regional sales manager.

I started buying my first property barely 6 months into my 1st real job in a bank, and
been buying ever since. When I quite my job and tell my boss that she is fired, I bought
25 properties, while being an employee.

So why do I sibuk here trying to share my past? Because some of you will be making
plenty of excuses on why you cant do what Ive done.

The reality here is that my background was very humble and I hardly had any advantage
growing up or while working. They make my story seemed as if I was the lucky one
although what I did was to follow a specific process that I know works and repeated that
process many time over.

Lucky is an excuse many people use so that they dont have to try. And there are many
more excuses

that people will tell me and Ive compiled them so that you can

understand where Im coming from:

Common excuses people give

on why they dont invest in

My reply

properties?
I dont have money to invest

I started with only Rm2000 capital. And I have

bought over 10 properties with less than RM5,000
capital for each. If you have sufficient knowledge,
you dont need much cash to buy properties.

Im just an employee, how to buy I bought 25 properties as an employee. Its actually

la?

easier for an employee to buy properties

I know a few people lost money So do I. But there are allot more people who made
in properties.

money than the ones that loose over a long term.

Key here is to be knowledgeable when investing. A
fool will part with his money faster than he can say
the word I Love PM

I cannot get loan

Understand how banks approves your loans so that

you can get your loan approved, every time

Boss dont give me bonus this More reason to invest so that you can create your
year

own bonus every year

I dont know where to buy?

This is learnable provided we put the effort and

time to hunt for the properties we need.

I want to focus on my career first

Ive seen people who lost their job at 45 years old

having worked for the same company for almost 15
years. Its OK to love your job today but realistically
one day your company might no longer love you
back.

I need to get married soon so I have my wedding paid for by my tenant. You can

need to reserve a lot of cash for do the same if you invest in properties 5 years
this

before you get married

I want to buy that car to look cool You know whats cool? Driving around in a Porsche
first. Then only I go buy a house.

that is paid by someone else ( Not from donation )

after just 5 years.

I need to reserve my funds so My kids are gonna go to UK for FREE, because my

that my kids can go to UK to tenants are going to help me for it.
further their education
Job not stable now, better not 1. When jobs are stable, the property you want will
take on new commitments

also be more expensive as other people will be

buying as well. When people are worried and arent
buying, thats when you most likely get the best
bargain.
2. Its only a commitment if you buy wrong
properties. If you pay to the bank RM1000 but you
get RM1500 in rentals, how is that a commitment?

Want to buy my dream house If you invest first, someone else will buy you your
first before I start investing

dream home. I only bought my dream house in Mont

Kiara after buying 24 investment properties, and it
was paid by another property, not using my own
cash.

My

parents/Girl

Friend/Boy- ............................................................... (speechless)

Friend/Cat dont allow me to

invest in properties?

So you see, all excuses are just excuses. In the words of Jordan Belford:

Why properties and not other investment?

Upon graduation, I started researching on ways to grow wealth and after seeing all
forms of investment vehicle made available to a 23-year old, I decided and knew
properties was the best fit for me. It is the only investment vehicle I know where I can
start with zero capital, and I can actually get another sucker to legally paid for things
that I own.

I cant borrow money to buy stocks, unit trust or gold, but banks are always happy to
lend me money whenever I want to buy properties.

Ask yourself, why banks are willing to let you borrow money cheaply for 35 years when
you buy properties, but not other investments?

The other reason, was properties, are simpler to understand.

Whats so difficult about understanding buying something that you can rent higher VS
your mortgage or instalments?

Im basically saying that anyone who can count money can invest in properties, which is
about almost everyone.

Stocks require a full understanding of the business that you invest in. Otherwise, you are
just gambling and sometimes you will win, but you can also loose.

10

You need a lot more intelligence to make RM100k in equities/stocks compared to

properties. Im basically saying due to my limited intelligence, properties fit the bill for
me. Plus, need to use own money to buy stocks, which sucks.

3rd reason, is that I think you can control the outcome of your properties much better
than any other investments.

I cant stop a company who is about to hire an idiot CEO to run the company, but I can
reject tenants who I think will be problematic.

I can rent bare, partly furnished, fully furnished, long term, medium term, short term if I
want to increase my yields. If I buy gold / currency / equities, I have no control on what
the price I can get tomorrow.

And since I realised I dont have the intelligence to master many forms of investments, I
decided to focus on properties. And it has paid off big time for me. I made my 1st million
(net-worth) at 28, and never looked back since.

Why am I giving this eBook for free?

I share a lot about my 1-ON-1 consulting sessions on my personal Facebook. In most

cases, I help advise people how to accomplish their financial goals using properties. In
one of my post, there were many who requested that I create a guide to give them some
ideas on how to achieve their financial objectives using properties. So here I am, sharing
my methods so that people can open their minds and realize the power of investing in
properties.
You can follow my Facebook here https://www.facebook.com/faizul.ridzuan.7 )

11

The other reason, I used to have a colleague who struggled to save money for her kids
education fund despite making RM25,000 per month in salaries.

I think she would have been a lot more comfortable if she has invested in some
properties and sell those properties off to fund her children education fund. Its not easy
trying to save RM2mil hard cash.

Most of use hardly have RM100,000 in the bank, let alone RM2mil. She has to save
approx. RM13k every month so I can see it was very taxing for her.

Not something that I want to do at 45 years old so I hope my sharing here will be able to
give some ideas on how people can send their kids for a decent overseas education
comfortably without struggling like my ex-colleague.

Today, I see people that are stuck in jobs that they dont like, with the boss that they
wish they could punch their face.

They cant afford to resign without an offer elsewhere as they have bills to pay and huge
monthly responsibilities and commitments.

Wouldnt it be nice to have the option to resign anytime and work in a job that you truly
like?

Today, I see parents worrying about not having enough to send their kids for an
overseas education, as the local education system is unfair and they suck anyway
(Coming from a local graduate here).

12

They ended up working and saving for 30 years to send their kids to UK in the hope of
having that great education with hopefully a good pay check later.

And then their kids drop out from school because they rather pursue art or political
science rather than becoming another unemployed doctor or a disgruntled lawyer
which their parents prefer today, good doctors and good lawyers are paid a lot.

Today, I see people STUPIDLY pay RM300,000 to RM1Mil to buy a car using their hard
eared money, when they can get someone else to pay that for them.

Today, I see people struggling to sustain their nice house and expensive mortgages,
when they can actually get someone else to pay for the house of their dreams.

Above, are all the reasons that compelled me to write this and allow people to download
it for next to nothing.

I hope it gives you some idea on how to get others pay for whatever you want to have in
life. I hope that by applying what Im about to share with you now, you no longer have
to worry about money in the future and start enjoying life.

Life is more than just about paying bills right?

13

HOW CAN I BUILD A RM20,000 MONTHLY RETIREMENT INCOME PORTFOLIO?

I will illustrate this using real life properties that I have purchased.

Im gonna use an example of 4 properties I owned to give you a taste of what you can
potentially achieve you you invest correctly using just 4 properties.

14

Property

Purchase

Current

Net gains if Monthly

Monthly

Nett

name

price

Value

I sell today

rent

cash

instalment

flow
Titiwangsa
Sentral

RM250,000

RM650,000

RM400,000
(

Unit 1

After

years

RM1200

RM2700

RM1300

RM1200

RM2700

RM1300

RM1200

RM2400

RM1000

RM1200

RM2200

RM800

RM10,000

RM4,400

6
of

purchase )
Titiwangsa
Sentral

RM250,000

RM650,000

RM400,000
(

Unit 2

After

years

6
of

purchase )
Summer

RM330,000

RM540,000

RM210,000

Suites SOFO

After

Unit 1

years

4
of

purchase )
Summer

RM335,000

RM540,000

RM210,000

Suites SOFO

After

Unit 2

years

4
of

purchase )
SUMMARY

RM1.15 Mil

RM2.38Mil

RM1.23Mil

Notes:

1. Both Titiwangsa Sentral were bought from developer in 2009, and completed in
2011. Paid 10% or RM25,000 deposit to secure each of these units.

15

2. Both Summer Suites units were bought in 2011, and was completed in mid2015. We paid a 25% down payment for this, as at that point of time we received
good bonus from our employments and sold a property with a decent profit so
we have plenty of cash back then and could afford to put extra in down
payments.

Titiwangsa Sentral

Summer Suites

16

Today, these 4 units generates approximately RM10,000 per month in terms of rentals,
and gives me RM4,400 in pocket money every month after deducing my monthly
instalments and maintenance fees.

My monthly instalment works to about RM5,000 per month, and I still have 23 more
years to pay off all my mortgages.

Now lets fast forward 20 years where I will be 55 years old.

I would have about RM150k loan balance left which I can easily pay using my EPF which
I can withdraw at 55.

That means I can fully pay off these 4 loans at 55 and get maximum from my rental
collection.

Today my rental collection are at RM10,000, but its safe to assume that the current
rental rate wont stay this low forever right?

17

If we assume that rentals actually go up by 3% every year on a compounding basis, I

should be able to comfortably collect over RM18,000 in rentals every month at 55.

To understand this, you can view the demonstration of the projected returns based on
5% capital appreciation and 3% rental increase annually:

Some of you might be thinking that Im perhaps way too optimistic in my projections.

Some of you might think Im uttering rubbish and the 3% rental increase over 20 years
is unrealistic?

If you are sceptical, please have a look at the rental and subsale prices compiled by The
Edge here:

Price increase of various properties from 2nd Quarter 2010 until 2nd quarter 2015

18

Rental increase of various properties from 2nd Quarter 2010 until 2nd quarter 2015

The chart above tracks the rental increase across multiple properties around Klang
Valley.

The best performing ones saw rental increase of over 80% in the last 5 years, and even
the worst one saw increase of 10% in the last 5 years.

19

Means so long as we continue to buy good properties, a 3% rental increase annually is

hardly impossible.

The best part about all of these can be summed up with the following:

4 properties are sufficient for you to build close to a RM20,000 retirement

portfolio. Not enough? Just buy more then.

If you spend less than RM20,000 per month at, you can live up until 150 years
old and still never have to worry about money. Your asset that has a net worth of
over RM5mil gives you an income of over RM20,000 per month. So you are not
living of cash you get from your savings, but from your asset-generating income.

If you needed a lump sum cash (say for medical purposes) you can always sell
one property to raise cash.

So there you go, building a retirement income of RM20,000 per month is not impossible
or difficult.

Hang on Faizul, you mentioned I can build my RM20,000 retirement portfolio for
free.

You paid down payment in those earlier examples, so its not technically free kan?

So if I dont have capital to invest, can I still get my RM20,000 per month
retirement income?

Yes you can. Let me illustrate how to accomplish this using other property examples
that I have purchased using little or no money.

20

Property
name

Purchase
price

Price
today

Rental
today

Tropics @
Tropicana City

Year of
Down payment
RM0

RM260,000

RM580,000

RM2,400

Mall - 2009

(RM1,000 Booking that

RM0
RM1,800
RM145,000

RM320,000

2010(RM5,000 Booking that

- 2011

was refunded later)

Axis Ampang
SOHU Unit 2

2009

was refunded later)

Axis Ampang
SOHU Unit 1

purchase

2011

RM0
RM151,000

RM320,000

RM1,800

(RM5,000 Booking that

20102011

- 2011

was refunded later)

Penaga@Taman
RM0
Raintree Batu

RM171,000

RM360,000

RM1,300

(RM1,000 Booking that

Caves

20102011

was refunded later)

-2011

RM0
Palazio Studios

RM98,000

RM180,000

RM900

(RM1,000 Booking that

2009

Unit 1
was refunded later)
RM0
Palazio Studios
Unit 2

RM101,000

RM180,000

RM900

(RM1,000 Booking that

2009

was refunded later)

RM40,000 ( fully
refunded upon
Regalia Unit 2

RM420,000

RM480,000

RM2,200

completion of the
purchase)

SUMMARY

RM11,300

21

2015

There you go. Using all these limited capital examples, I can build a portfolio that can
give me RM11,300 per month rentals today.

If I can pay these loans off in 20 years, I will be able to collect over RM20,000
retirement after 20 years.

So using limited or zero capital, you can still build a decent retirement portfolio.

Best of all is that all these properties were rented at more than the monthly repayment
and allows me to enjoy very minimal holding cost.

All I need to do is wait for another 20 years and let my tenants pay off my loans.

Faizul, you can get these results as you bought properties when it was still
relatively cheap.

Can one still do this today?

The honest answer to this question is I dont know what the future might hold for any of
us. But I like to look at history to give us an indication of what will happen?

22

The reality here is that in the period of 1988 until year 2014, the only years where
property values dropped was during the 1998-1999 Asian financial crisis.

This data is proof that Malaysias local property market has been very resilient and price
have risen every year barring a major economic crisis.

In our estimates and backed by the data above, if one has a minimum holding period of
10 years, their property risk reduces significantly and should be able to enjoy decent
gains.

For example, from 1988 until 1998 (Asian Financial Crisis), property values still more
doubled over a period of 10 years, while the next 10 years (1998-2008) property values
still increase by over 30% despite the aftermath of Asian financial crisis.

We both dont have a crystal ball about what will happen in the next 10 years, but Im
betting that property values will continue to increase thank to higher cost to build

23

properties combined with the fact that our young population means demand will
continue to remains strong.

Our average population age is below 30 years old means more than half of our
population today has yet to own a home.

Can everyone do this?

From a theorist point of view, yes anyone with a decent job and income at least RM5,000
per month should be able to execute this plan.

But the reality is that great buys like Titiwangsa Sentral and Summer Suites dont come
by very often.

Ive been investing for 11 years now and great buys are once in a blue-moon occasion.

These great property wont jump in front of you and say BUY ME!, right? Today, when I
see great buys, I dont buy only 1-2 units, and I tend to buy a lot. For example:

In 2013, I saw a development where the units were selling at 30% below its real
values. Bought 7 units at one go at an average of RM240k each, and today we
saw rental rates of RM1800-RM1900 in 2016, and values has gone up to
RM350k. 40% gains in 3 years, almost 10% gross yields, and RM400 positive
cash flow per unit isnt too bad when most people I know are struggling to break
even.

24

In 2015, bought 8 units of double storey houses in a single development, at

around RM500,000 each. This area, will soon receive MRT connectivity so I
found this to be a bargain as even 3 bedroom condos in the neighbourhood area
today are selling at RM500,000.

Some might argue that I was stupid to put all my eggs in one basket.

But most of my regrets in my investments comes from the fact I didnt buy enough so
now I buy a lot in a single development the moment Im convinced that those properties
are going to be a great buy.

And I spend a lot of time on research to make sure I dont make the wrong investments. I
even developed my own set of test and framework to guide me in all my investments.

The results so far have been extremely encouraging and Ive yet to buy a negative cash
flow property or anything that couldnt make a minimum 100% return on capital in 3
years.

People say you need to choose between capital appreciation or cash flow.

Im a little greedy so I tend to buy things that can get at least break even rentals with
good capital appreciation prospects. So in essence, I target both capital appreciation and
rentals.

Can anyone do what I do and replicate my results?

Absolutely yes.

25

The key here is to learn the rules of this game and have the patience to execute your
own game-plan.

So if you want to learn my methods directly from me, I run this program called Sarjana
Hartanah, where I share my learnings from my 11 years of investing experience.

I also share the methodology and process I used to identify the prospects of Titiwangsa
Sentral and Summer Suites during Sarjana Hartanah.

Besides this, you can also expect to learn the following from Sarjana Hartanah:

How to continuously get loans from banks

How to overcome 70% LTV restrictions and get 90% loans for all your
purchases?

Learn how to build your children education fund and send them to Harvard /
Oxford for free?

How to retire with minimum RM20,000 passive income per month?

How to ensure your property can be rented out easily and quickly?

How to shorten the time you take to do research?

How to completely outsource tenant management and property maintenance?

Register here and learn how to identify that next property that could be another
Titiwangsa Sentral or Summer Suites to fund for your own RM20,000 monthly
retirement fund at: http://faizulridzuan.com/sarjana-hartanah-english/

26

p/s: Want more discounts? Come with a few people and gain more savings from what is
already the most value-for-money property education program in Malaysia!

27