A mortgage broker says Aussies who limit themselves to three or four homes while building their property empire are missing out on millions of untapped wealth.
Bill Childs, 28, told Daily Mail that trust lending could be the answer to increasing borrowing capacity for buyers looking to add to their portfolio.
The broker, who owns eight properties, said using a trust 'keeps debt out of your personal name and allows you to extend your borrowing capacity'.
'It doesn't suit everyone because realistically you don't need 10 properties to make money and retire. But, there are a lot of people that work very hard, enjoy buying properties and want to keep going,' he said.
'What often happens is if they put all the properties in their personal name, then they will cap out on an average income at the three to four property mark.'
Mr Childs said it 'sounds crazy' but that trust lending is a way of getting banks to 'exclude millions of dollars worth of debt' and agree to another loan.
'If you have $3million dollars worth of debt inside the trust, and that trust is profitable, when you go the bank for a loan for a new property, the bank will exclude that existing $3million debt,' he said.
Buyers with existing properties in a trust, 'can set up a new entity or buy in their personal name going forward as if they have zero dollars debt'.
Mr Child ( pictured with his girlfriend) owns eight properties and purchased his first aged 21
The broker (pictured) has shared the simple way Aussies can build their property portfolios
Mr Childs warned Aussies not to expect massive results from the jump.
'Investment properties aren't profitable at the moment when you first buy them because interest rates are high and returns aren't that great,' he said.
'But over time, they do become positive as the rent rises and as your rates and loans reduce, you'll get positive at some point.
'Now, what happens with that trust is when it is positive, you can get a letter from your accountant confirming that the trust is profitable.'
He said the bank will assess personal liabilities, personal debt and the new property before a loan is approved.
'When they go to look at the trust they stop because they have the letter saying it's profitable,' he explained.
A person could then buy another three or four properties in a trust, wait for the trust to become profitable before starting the process again.
Despite it being the 'main way to grow a larger portfolio these days', Mr Childs warns the process 'can be dangerous' and should be taken seriously.
The 28-year-old said trust lending could be the answer to increasing borrowing capacity
Why young Aussie broker, 28, with eight-property portfolio prefers to live in his dad's granny flat
'Not many people knew about it, but it has become much more mainstream in the last two years to a point,' he said.
'I think it's being over leveraged by some professionals in the property industry and it can be dangerous if they do it the wrong way.'
Mr Childs, who lives in Coffs Harbour on the Mid North Coast, bought his first property in Tamworth after borrowing $400,000 from the bank at the age of 21.
He worked as a beekeeper earning $60,000 a year when he purchased the property and was unable to borrow enough to buy a home in his area.
The broker had left school at 16 and followed his dad's advice of putting his savings into property rather than spending it on a car.
Mr Childs previously shared his three rules for buying property.
'Don't buy brand new, don't buy off the plan apartments and don't buy apartments in high rise buildings,' he told Daily Mail.
'You want to buy with the value in the land not the building.
'The ugly duckling performs better.'