AN INTERVIEW WITH STEPHEN McCARTHY

WE TALK TO FOUNDER, CEO AND OWNER OF McCARTHY GROUP, AS THE COMPANY CELEBRATES ITS TENTH ANNIVERSARY.
THE VISION

I owe everything to Frank Flowers. He was my mentor, and over 20 years ago, he taught me the lessons of how to achieve financial freedom through property. I had always thought that if I simply worked hard enough, for long enough, that I would end up successful. But I was wrong. I ended up simply walking away from my 18 hours a day, 7 days a week catering business, and I think the only person who made anything out of it over all the years was the landlord who rented me the space!

Frank showed me how the banks can help you to acquire assets, and how tenants and the taxman pay most of the holding costs. With increasing rentals, and the miracle of compounding capital growth, time just does the rest. The process can then be repeated, many times over, until you reach your goal.

In many ways, I see myself as having the responsibility to pass on this knowledge to as many people as I can reach. I have taught our staff, and they in turn show our clients how financial independence can be achieved through property. We then make it easy for our clients, and provide a lot of support along the way.

THE EARLY YEARS

We started in Parramatta, going door-to-door, offering mortgage alternatives to homeowners. There were six of us back then, and straight away we battled to keep up with demand. It seemed like everyone wanted to save money on their mortgage, and on tax. We added to the offer so that equity in their existing homes could be used as the deposit on investment properties. At that time no one could really explain the investment property proposition properly. It was all gobbledygook. We decided to make it simple, to de-mystify it, and make it understandable and accessible to everyday working Australians, and help them to get into it.

Rising property prices in Sydney led us to look further afield, and together with our clients, we had the opportunity to strike Gold firstly in Noosa, and then the Gold Coast. We developed the tagline 'Just add Water', because the yields in cities with strong lifestyle appeal, solid economic activity and affordable property prices made for a winning formula. We even had a sand-covered floor in our meeting room so that no one could ever miss the link to appealing property locations! That was probably a little weird at the time, but it gave us all a very clear focus.

We moved to new investment locations when the price / yield equation caught up with us. We prided ourselves on finding future "hotspots" and getting in early so our clients could really benefit from the growth. We went to Cairns, Townsville, Perth, Mackay, Darwin, and more recently, to Melbourne. Our target property has always been an attractive, almost executive level home with quality finishes, but one that is right in the mainstream band of affordability where families need an attractive yet affordable home to rent.

OUR CLIENTS

We exist to help our clients discover how investment property can enable them to achieve financial independence. There is huge satisfaction in helping others to unlock the secrets for themselves. We thrive on case studies and testimonials of client success.

Right from the start we put ourselves in the client's shoes and developed concepts that would make it easier to understand. We simplified everything. In addition, we got rid of much of the hassle and frustration that puts people off investing in properties.

Our mantra is Building Family Assets, and the beauty of it is that typically a couple of properties are needed to achieve financial independence. This means that if we do it right, and if our clients are satisfied with the process and the results, then they will keep coming back to us for more. And, in recent years, their children have started to invest as well, which makes this so fulfilling and exciting. It's becoming generational, as the kids learn from the parents, and make their own moves as soon as they can.

OUR PRODUCTS AND SERVICES

Through staying close to our clients needs, we have developed our offer to cover virtually every activity involved in the investment property process, from the initial sourcing of projects, through construction and finance, all the way through to property management and expert services in legal, financial and tax matters. We are a one-stop solution, and take all the hassle out of what can be a frustrating and confusing process. We also introduced a great paperwork management system that makes organising everything a breeze, and which our clients simply love. We try to make it easy every step of the way, and deliver an end-to-end solution that makes investing in property a rewarding experience.

OUR STAFF

My mission is to keep our staff motivated and happy. If they are happy, our clients will be happy too. Many of our staff have become investors in their own right, and they have empathy for what clients will experience. They walk the talk, they sell and support a concept and product they believe in, and that has worked for them in their own lives. I am proud of how many of our staff have such long service. They are loyal, and dedicated, and I have great support staff who help me to do my job. I love it when they take responsibility for making things happen. I am not a micro manager they have full scope to use their initiative, take responsibility and solve the challenges that come their way.

BIGGEST HIGHLIGHT

Without a doubt our biggest highlight was our celebration dinner at Star City in Sydney in december 2007, where over 500 of our staff and customers joined for an evening to celebrate the results that taking positive action had achieved. I'll never forget that atmosphere of collective success that filled the room Ð it was without doubt totally inspiring!

THE FUTURE

We want to get better and better at what we do. We want to expand further into commercial properties, support our clients in the transition to self managed super funds, and refine our procedures to make the whole process seamless and hassle free. I love what I am doing. It brings me huge satisfaction, and I wouldn't be doing anything else. Our staff love it too. It's a tough business, and it tests us. But we love it, and the change that we see in our clients lives makes it all worthwhile.

As told to Graham Hardy, Supplier, investor and friend.