Property Magicians Podcast
Episode 129: Building student accommodation in the township

Episode 129: Building student accommodation in the township

December 6, 2022

In this week’s podcast we talk to Nthabiseng Sejake, a property investor and municipal employee from Soweto who works in utility and property management. Her mom is an entrepreneur who owned a shebeen (tavern), which is now a bottle store; her mom also owns 4 properties.

 

She bought her first property to get away from her mom and have space. She bought her first property (a 2-bedroom house) in Protea Glen after being referred by a client. She got funding from Mastandi to get the property and to get building funds.

 

She converted the unit into a 14-unit development where every unit rents out for R3,000 a month.

In 2015, she and her partner decided to buy another property - she quit her job and invested her pension money to build a 10-unit development, where she rents out each unit for R9,000 to University of Johannesburg students. All her units have washing machines, DSTV, and Wi-Fi. To get accreditation, she had to provide the students with transportation.

 

She is working on her third property, another student accommodation (a 3-bedroom house), where she will be housing 6 students at first, thereafter she plans to build the development into a development that houses 35 students.

She works with an attorney and a digital marketing property company, Bathamaga Property, that helps her find tenants. 

 

This is another incredible episode.

Episode 128: A fintech company that helps you go from first time homebuyer to property investor

Episode 128: A fintech company that helps you go from first time homebuyer to property investor

November 30, 2022

In this week’s podcast we talk to Tim Akinnusi, the CEO of MortgageMarket.co.za. Tim is originally from Nigeria but has resided in South Africa for 30 years. He is the former Managing Executive of ABSA Home Loans, and prior to that he was the Executive Head of Sales and Client Value Management at Nedbank Home Loans.

 

Tim is a seasoned property finance expert with over 15 years’ experience in the financial sector. Tim started MortgageMarket in 2020 to help ordinary South Africans get the best loan to value.

 

MortgageMarket is the first online marketplace for home loans to give customers direct access to the Top 7 banks in SA and has done more than 2000 homeloans; they pay customers R5,000 cash back just for getting their home loan through the platform. 

 

MortgageMarket will also help you find a property, understand if the property is priced correctly so you are not over-paying for the property. They also help you get the best deal for your mortgage by being able to compare deals across banks and negotiate better.

 

MortgageMarket also works with property developers who are buying land in good areas to partner with them to help them make sure they are packaging the properties in a way that allows the banks to see value in what they are offering.

 

MortgageMarket is also expanding into insurance and bridging finance. 

 

In this podcast episode Tim also shares how to increase your credit score without a credit card or taking on more debt. The higher your credit score, the more like you are to qualify for a home loan.

 

He lost out on buying his first home for R345,000 off plan because he had too much debt (an expensive car), so he ended up buying his first home for R600,000 and ended up paying transfer costs.

 

He has started to build a strong property portfolio because he can see properties before they hit the market, from working with property developers.

Bonus Episode: The most common property investing questions with PropDocMom

Bonus Episode: The most common property investing questions with PropDocMom

September 14, 2022

In this episode- PropDocMom took the commonly asked questions by mentees and some general questions off her Facebook page.

 

Questions that may seem obvious to a savvy investor or questions you've always wondered about- however never had the time or opportunity to have addressed.

 

Here's some mentor tips about property management matters, property financing and property structuring.... and more

 

Take a listen... Leave us your comments and more questions for Propdocmom.

 

See you on the next episode!

Episode 127: Building a real estate portfolio through intuition and ancestral wisdom

Episode 127: Building a real estate portfolio through intuition and ancestral wisdom

August 24, 2022

In this week’s podcast we talk to Tinyiko Motileni, who has 3 businesses, one of which is a property business. She also has a Master's in Business Leadership.

 

She didn’t even know there was anything like real estate. She just wanted to have a side hustle, make money and buy property. Her main aim with property was to be free and to have passive income.

 

She bought her first house at 24, she bought her house to get passive income by building a property in the back. Unfortunately, her mom passed on in the same year; at work they asked her to move to a different city (East London), so she ended up renting the whole property and she charged her tenant enough money to pay her mortgage because she didn’t know enough about property investing.

 

When she moved to East London, she decided to buy a house, using the rental budget her employer was giving her. She ended up buying her property with her partner at that time and when they broke up, she ended up losing the house.

 

When she moved back home, she started researching township properties and he asked her to buy his house; she took all her savings and bought the house and built 5 rooms and asked her brother to help her tenant them.

 

Her father had left, so she decided to utilize the land and started farming; she realized that her mother had built rooms on the farm, so she started to rent out those rooms.

 

Through trial and error, she was able to learn that her cash crop is spinach.

 

She bought her properties cash and is only left with 2 years to complete payment for one of the properties.

 

In this podcast, Tinyiko also explains how she is building her business with her ancestral gifts and how everything she is doing is guided and for the next generation.

 

This is another incredible podcast.

Episode 126: Understanding your why when investing in property

Episode 126: Understanding your why when investing in property

August 17, 2022

In this week’s podcast we talk to Zoliswa (Zoe) Singcu, a mother of two and world traveler who is originally from Port Elizabeth (PE), South Africa and is currently working in Saudi Arabia as a Medical Technologist.

She is a world traveler. She bought her first property for her family in Kimberly; she and her husband struggled to get that property. She spent a lot of her time watching programs that have to do with houses and decorations. When she was working the night shift at her job at the hospital, she would look at properties internationally.

 

She wasn’t even thinking of property investment at that time, but she loved the architecture and the designs. One time, she was viewing properties in PE, and she realized she could afford to buy one of her dream properties. This is how she bought her second property.

 

At the time, she just wanted to own a property in that estate; there was already a tenant in the property, and she took over the tenant. The property was positive cash flowing from day 1.

 

She bought her third property in Pretoria when she was getting divorced and some of her friends suggested she leave Kimberly. She bought the house without seeing it, moved to that house and rented out the house in Kimberly, which she has since turned into an AirBnB.

 

Shortly after buying the third property, she bought 2 units from a developer and a year later she bought another 2 units from the same developer and rented out those properties to tenants and started breaking even.

 

After buying the 4 properties, she didn’t buy anything for two years, she approached her brother to partner with her to buy land in PE, but he changed his mind because he was scared of losing his money, she went ahead with the sale. Her plan with the land is to sub-divide the land and build 2 houses and resell them.

 

She then bought a new unit (new development) in Pretoria and turned it into an AirBnB unit, which is doing very well, and that income covers the expenses for some of the properties that are under performing.


Zoliswa buys property for different reasons - to make sure that her kids have properties and don’t have to start from zero. She wants to have a lot of properties so that she doesn't have to struggle later in her life.

Episode 125: Talking to the author of “Stokvels - How they can make your money work for you”

Episode 125: Talking to the author of “Stokvels - How they can make your money work for you”

August 8, 2022

In this week’s episode of the Property Magicians Podcast, we talk to Palesa Lengolo, a finance professional with over ten years of experience in investments, banking and accounting.

 

She’s also an author of a book called ‘Stokvels - How they can make your money work for you' and told us that the stokvel industry is a R50 billion (US$3 billion) in South Africa.

 

She grew up seeing her mom being part of stokvels. She became interested in stokvels when she started working for a pension fund company and learned about investing; she realized that the way the pension funds were working was very similar to stokvels. 

 

The first stokvel she was part of was non-monetary - for funerals, where the members would provide food for funerals, eventually the stokvel evolved and members started sending money.

 

Her mom then joined a stokvel that evolved into a lending stokvel, where they loaned money to teachers and postman for 30%. 

 

Her work with pension funds led her to connecting with other stokvels at the Stokvel Academy and she asked them if they were interested in investing.

 

She then volunteered to work with the Stokvel Academy and to teach them about investing and creating financial freedom. She then started doing research on stokvels and property stokvels instantly popped up.

 

She shares that there are 4 ways of making money in property stokvels:

  1. Trust - setting up a trust and investing in assets
  2. Fund property deals or be an equity partner in property deals
  3. Form a Pty and buy properties under a Pty and the members are shareholders under a Pty
  4. Bond - where the stokvel members are paying each other’s bonds  

 

In this podcast Palesa also talks to us about the importance of trusts and structuring within stokvels and explains that as a group you need to have a clear goal for your stokvel.

Episode 124: From sourcing deals for investors to investing in multi-lets

Episode 124: From sourcing deals for investors to investing in multi-lets

August 2, 2022

In this week’s episode of the Property Magicians Podcast, we talk to Thapelo Mokau, a flight engineer and property investor.

 

He bought his first property in 2019 when he qualified as a flight engineer. He was planning to stay at the property but he attended a real estate seminar where he was told there were a few strategies he could use.

 

He started with sourcing, where he looked for property for investors. He started by engaging with other sourcing agents and started building a relationship with various people in the real estate industry.

 

He bought a property in Boksburg that was a buy-to-let, he got tenants to pay money into his bank account and then used that track record with the banks to show that he was receiving money from tenants and also receiving his salary.

 

His second property was a multi-let in Kempton Park - he explained his requirements to a real estate agent and everything went well. He is planning to use the cash flow from the property to build and extend the property so he only uses bank money to buy the property.

He explained that his strategy is to grow his asset base and use different avenues to grow his portfolio.


This is another educational podcast. 

 

Tune in!

Bonus Episode: How to determine if a property is profitable or a good investment

Bonus Episode: How to determine if a property is profitable or a good investment

July 29, 2022

In this week’s Property Magicians Podcast, we bring you a bonus episode from a class we had for our stokvel members where Leroy taught us about running the numbers and analyzing a deal so we could understand what makes a property profitable and if it's ever a good idea to make a loss in cash flow on an investment.

In this class, we learned that there are three stages when it comes to running the numbers:
Stage 1: Capital Cost
- Transfer Attorney fees
- Transfer Duty (if your property is over a million rand)
- Bond Attorney fee
- Deposit
- Auctioneer costs

Stage 2: Refurbishment/ Holding Cost
- Rate & Taxes
- Electricity/water
- Bond/interest
- Refurbishment
- Levies
- Insurance

Stage 3: Letting/Resell Cost
- Bond/Interest

-Insurance
- Rates & taxes
- Levies
- Maintenance
- Management fee
- SELL- EA Commission

Leroy also taught us some fundamental Calculations:
● How to calculate gross yield and why this figure is important
● How to calculate cash flow so we can know if a property is a good investment
● How to calculate capital cost so we could budget and know how much of our own
money we are investing in a deal
● How to calculate ROI (Return on Investment)

This is a very valuable episode, so we recommend you get your pen and paper out and take notes. And don’t forget to join the Property Magicians Stokvel because we’re building an incredible property portfolio and providing real estate education.

 

 

Episode 123:  How to earn passive income with short-term rentals as a full-time employee

Episode 123: How to earn passive income with short-term rentals as a full-time employee

July 5, 2022

In this podcast episode, we talk to Lebo Ramafoko who shares with us why it’s important to understand the politics of financial institutions and how even as recently as 1998- black South Africans had not been exposed to financial institutions and had limited options to get mortgages or even negotiate terms on their loans. 

 

The psychology of the “big house” for a black child. How the big house emanates from lack, from wanting to show up in a particular way, be applauded by our community and friends. We buy big houses for psychological and deep-rooted reasons too - hers were personal reasons after losing both parents within months of each other. 

 

Becoming a landlord for Lebo was circumstantial, she owned over 8 or 9 houses before she actually viewed her house as an investment and she became an accidental landlord.

 

She sold her “big house” and a smaller apartment to buy an investment apartment. When COVID hit - she took advantage of the low prices and bought a 1-bed apartment. But the long-term rental strategy showed its shortfalls. Long-term tenants offered low rentals. COVID and rental offers were so disappointingly low. 

 

She moved to Cape Town for a new job and made use of her time while in Joburg to scout for reasonable hotel-quality accessories and furnishings. It took two weeks to furnish the apartment. She started renting out the apartment in mid-2021 and she’s had 100% occupancy for over 14 months. And finds it highly profitable - it pays for itself, she makes a profit so much that she’s gotten a new apartment in Cape Town!

 

This now is her investing strategy- at the time of the recording- she was ready to buy a third apartment for short-term renting. 

 

This is another incredible podcast.

Episode 122: How to make R27,000 (US$1,695) per month on your first property flip

Episode 122: How to make R27,000 (US$1,695) per month on your first property flip

June 29, 2022

In this week’s podcast we talk to Susan Granger who defines herself as a creator. She explains
that all her adventures have to do with what she feels inside her. She creates because she wants
to see something growing.

She is the owner of Nubian Q Urban Farm where she grows her own food organically and teaches others to set up their own sustainable food gardens. She also has a seed bank that she has started creating and is currently sitting at 400 species of seeds.

Her food garden is in an estate - she uses small amounts of land to build sustainable food.

She bought a house after her husband’s passing - she realized she needed to survive, so she
reached out to Dr Miranda for property mentorship. She hired two lawyers just to be safe, an architect and a project manager and started the purchase of a property in Yeoville.

She bought a single 5 bedroom house, a kitchen, one bathroom and one toilet. The house also a had a patio and other outside dwellings including a salon. Next to the salon there were other 2 rooms with a bathroom. The house had not been occupied for 4 years and was run down with dog poo and rodents in the house.

They converted the 5 bedroom property into 9 self contained units - each unit has a bathroom and a kitchenette and is open plan. Every unit is different and they decided to keep the aesthetic of the unit but they had to replace the plumbing and rewire the whole house.

The property cost R820,000 and R380,000 to renovate and is still under renovation (renovation started March 2022). Her focus when she was renovating the property was to create a brand and build a house with dignity so she bought instant water heaters and provided free wifi in the property.

When they were done renovating the house, they received several offers to purchase the house, but she chose to keep the house and rent it out. The lowest monthly rental is R3,000 and she is increasing it to R3,700.

This is another incredible podcast.

Book that inspired Sue:
She doesn’t read but she is obsessed with tiny houses on YouTube

Contact:
Instagram: https://www.instagram.com/nubianqurbanpatch/
Instagram: https://www.instagram.com/pivot.propinvestments/ 

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