Property Magicians Podcast
Episode 62: The importance of a town planner and zoning in real estate investing

Episode 62: The importance of a town planner and zoning in real estate investing

November 24, 2020

In this week’s episode we talk to Cacisa Mgudlwa, a town planner and property investor, who takes us through her journey of paying off R365,000 (US$23,644) in debt so could start her property investing journey.

 

As property investors, we often hear horror stories about zoning, in fact, when we started the property podcast, we (Dr Miranda and Vangile) were both interested in a multi-let in Mpumalanga, South Africa, but we soon found out that the multi-let had some zoning issues and parts of the building would have to be torn down in order for the sale to happen, which basically defeated the sale.

Needless to say, the sale didn’t happen.

 

So in this week’s episode, we decided to bring a town planner in South Africa to answer some questions:

 

🔴  Why is it important for real estate investors to understand zoning in their municipality? 

 

🔴 What is town planning and how do town planners work with real estate investors?

 

🔴 How long does it to take to rezone a property and what is the process to do this (change a property from a residential property to a multi-let or from a commercial property to residential units)? 

 

🔴 Why is it important to see the title deed before you purchase a property?

 

Click play to listen to this week's episode and leave us a note in the comments section below. 

Episode 61: How to do deal analysis and mitigate risk in real estate

Episode 61: How to do deal analysis and mitigate risk in real estate

November 17, 2020

How do you know if a property is a good deal?

 

How do investors decide on their maximum offer on a property? What factors are they looking at and considering?

 

We know in the time of Covid, we are told to buy properties because it’s a good time to invest since it’s a buyers market. So we thought it would be great to help first-time investors understand the numbers. 

 

In this episode, we teach you how to analyze a deal and walk you through a case study of a deal that looks great on the outside but when we dig a little deeper, the numbers tell a different story. We explore ways to make the deal more lucrative.

 

Dr Miranda walks us through a multi-family deal - 7 bachelor units with an asking price of R580,000 (US$37,440) and cash flowing at R7,700 (US$496) a month.

 

We look at the profitability of the deal, the Return on Investment and some of the risks that are embedded in this deal.

 

We also explore ways in which we can mitigate risk in our investments during this time.

 

So get your pen and papers out and click play, because you are in for a treat.

 

Special thanks to Dr Miranda (our co-host) for walking us through this case study. You can sign up for her property mentorship at this link: https://propdocmom.com/

Episode 60: Using village land to solve the problems of poverty

Episode 60: Using village land to solve the problems of poverty

November 10, 2020

In this week’s episode, we talk to Yanga Stuurman, an engineer, non-executive director and partner in a mining and geology consulting firm. 

 

Yanga is also the founder of a social entrepreneurial venture, Sakhikamva, in the Eastern Cape. 

 

Yanga is originally from a farming village; her parents had farming projects when she was growing up but when her father passed away in 2015, a lot of the farming projects came to a halt and a lot of the villagers lost their jobs and source of income.

 

That’s when she decided to launch Sakhikamva, a project that teaches villagers how to farm, sell their produce and in turn create food and income security using the land.

 

She teamed up with the traditional council in her village to get their support and land for farming; the sub-headman helped her 80 - 100 households to pilot the project. The project was such a success that it was rolled out to 2 other villages and is now operating in 3 villages.

 

The villagers have nutritious and organic food to eat and all the excess produce produced is sold to local supermarkets. 

 

Sakhikamva has also been subcontracted to produce 800 tonnes by a well-known brand in South Africa and Yanga is also consulting with other villages to find new ways to use land to create sustainable income.

 

This is another inspiring episode. It highlights the importance of land and why land is wealth. 

 

Click play and leave us a link in the comments section below.

Episode 59: Using other people’s money to grow to 70 properties

Episode 59: Using other people’s money to grow to 70 properties

November 3, 2020

In this week’s episode, we talk to Taurai Jack, founder of M5 Property Addicts, a company that helps people invest in property for a targeted return of 15% per annum. 

 

Their aim is to give people, who don’t have enough time or money, an opportunity to invest in the real estate market and make a passive income every month.

 

Taurai started his real estate journey when he was R7 million (US$421,000) in debt; he was invited to a Rich Dad seminar where he met Leroy Slava (episode 54), who was talking about investing in real estate and creating passive income and he realized there was another way to start investing in real estate.

 

He then took his wife to the next seminar and she signed both of them up for coaching.

 

In his first month of coaching, his coach told him he’d have to look at 100 deals and analyse them in order to find a good deal.

 

He looked at 63 deals and ended up buying a property for R160,000 (US$9,623). 

 

After that he started getting other people involved in his deals. He would get 4 to 5 deals a month (eventually he ended up with 10 deals a month) and would pass those deals onto other investors and get paid from that. He would then use that money to pay off his debts.

 

It was at this time that he reconnected with one of his former co-workers, Retha Van Rooyen, who told him she didn’t have deals but she had access to money from people who were interested in investing in real estate.

 

They realized they complimented each other very well - Taurai could get the deals and Retha could get the funds from investors; they could create a property portfolio using other people’s money, and with that realization M5 Property Addicts (m5propertyaddicts.com) was born. 

 

Since its formation in 2017, M5 Property Addicts has done projects in 4 cities - Durban, Cape Town, Pretoria and Johannesburg and now has 70 properties in its property portfolio.

 

This is another eye-opening episode.

 

Click play to listen to this week's episode and leave us a note in the comments section below. 

Episode 58: Why you need a Quantity Surveyor on your next property investment project

Episode 58: Why you need a Quantity Surveyor on your next property investment project

October 27, 2020

In this week’s episode, we talk to Sello Masebi, a Quantity Surveyor and serial entrepreneur, about short term financing for real estate projects, quantity surveying and why everyone needs a quantity surveyor in any real estate project.

 

We learnt that quantity surveyors are the people who are in charge of financial management, quality control and time management in the real estate project.

 

This was one of the most eye-opening episodes for us and Sello answered some great questions for us:

🔴  Why is quantity surveying important to real estate investors? 

🔴 At what stage of a development does an investor involve a quantity surveyor and why is that important?

🔴 How should investors work with quantity surveyors, how often should they meet, what should they discuss and look over when they do meet? 

🔴 For a newbie developer, what would you advise that they should be paying attention to during a project? 

🔴  What costs should a property investor be wary of when starting a construction project? 

🔴 What are the professional fees charged by quantity surveyors? Are these fees determined by the market or by the size of the project their experience?

🔴 Are there any remedies that one can employ when they notice that a project is running over time and over budget? 

 

You’re really in for a treat and a lot of aha moments.

 

 Click play to listen to this week's episode and leave us a note in the comments section below. 

Episode 57: From Fitness Trainer to negotiating a R1 billion (US$61 million) property deal

Episode 57: From Fitness Trainer to negotiating a R1 billion (US$61 million) property deal

October 20, 2020

In episode 57, we talk to Toni Ninkovic, a property mentor, who’s originally from Serbia and now lives in South Africa.

 

Toni grew up in a 19 square meter home in a family of 5. His mom would always tell him not to work for someone and would encourage him to work for himself.

 

So he started dabbling in entrepreneurship in his teens, by the time he was 12, he was buying his own clothes with his own money and by the time he was 22, he was earning 3 times his mother’s salary. 

 

He realized he wanted more, so he decided to leave Serbia for the US, where he ended up working on a cruise ship, which is where he met his South African wife.

 

He came to South Africa to meet his wife’s parents and he fell in love with the country and that was it - they stayed.

 

A few years ago, he went to a 3 day Rich Dad, Poor Dad workshop, which launched him on his current property journey.

 

He started flipping properties (buying properties low and selling them at a higher price) and made R120,000 (US$7,300) on his first property. 

 

He soon realized that property flipping took a lot of time and energy so moved into property sourcing, where you make money by finding good property deals for other people to invest in. 

 

In this episode Toni also shares with us how he was able to negotiate the cost of a R1 billion (US$61 million) property deal down to R850 million (US$52 million) and how he made 2.5% commission from that deal.

 

At the end of 2019, he started his own property mentoring company (propertymentor.co.za) and now teaches others how to access the property market.

 

Click play to listen to this week's episode and leave us a note in the comments section below.

Episode 56: Profiting from rent to rent on the African continent

Episode 56: Profiting from rent to rent on the African continent

October 13, 2020

In episode 52, Mizo and I shared that our mission for year 2 of this podcast was to showcase real estate investors in other African countries, besides South Africa, so we are excited about episode 56. 

 

In this week's episode, we talk to Jacqueline Tsuma, a real estate investor from Kenya who helps other investors profit from a rent to rent strategy in various African countries. 

 

Jackie was born in Kenya but has lived on 2 continents and worked in 4 different countries. 

 

Her real estate investment journey started when her husband started sharing how his work colleagues would team up with each other to buy large properties (10 - 50 acres) in Kenya and also flip properties in South Africa. 

 

Hearing these stories got both of them interested in the property market and they soon got a US Dollar loan at 6.5% and used that to buy their first property in Mombasa, Kenya. 

 

They soon realized that that property was great for vacation rentals and could be used to generate them an income and 6 months later, they found themselves shopping for another property, and as they say, the rest is history. 

 

Today Jackie helps Africans in the diaspora enter the real estate market on the continent using a rent to rent strategy.

 

She helps clients rent properties in various African countries, furnish those properties and then works with them to sublet the properties on Airbnb or to diplomats at a higher price. 

 

She works with a team of experts and investors on the ground in various African countries including South Africa, Kenya and Rwanda. 

 

This is another eye-opening episode.

 

Click play to listen to this week's episode and leave us a note in the comments section below. 

Episode 55: From a mud house to building dream houses

Episode 55: From a mud house to building dream houses

October 6, 2020

In this week's episode, we talk to Tshegofatso Bodibe, about his journey to becoming an architect and the role of an architect in real estate investing. 

 

Tshegofatso grew up in a mud house in Hammanskraal, South Africa and was raised by his grandmother. 

 

When he was in preschool, their mudhouse collapsed and trapped him and his brother inside, luckily his uncle got them out. 

 

When he was 10, his uncle decided to build his mother a home and Tshego became obsessed with drawing the lines and the plans. 

 

Later he ended up at a high school that focused on technical drawing and he eventually ended up studying architecture. 

 

In this episode he answers some important questions to help us on our real estate journey:

 

🔴 At what stage of the development does an investor involve an architect and why is that important?

🔴 How do you recommend an investor work with an architect on their development project – how often should they meet, what should they discuss and look over when they do meet their architect? 

🔴 Are architects governed by any regulations in South Africa and how do they charge for their services? 

🔴 What are some of the challenges that can stagnate or affect a project, that investors should be aware of? 

 

This is another educational and inspiring episode. 

 

Click play to listen to this week's episode and leave us a note in the comments section below. 

 

Episode 54: Overcoming addiction to own 35 properties

Episode 54: Overcoming addiction to own 35 properties

September 28, 2020

In this week's episode, we talk to Leroy Slava about his property journey. 

 

Leroy is a husband, a father to a 20-month-old daughter named Hope, a Christian and a full-time property investor. 

 

He currently owns 35 properties but his property journey started by mistake - he was a drug addict for 10 years, since grade 10. When he was 20 his father passed away and left him a house, at the age of 25 he decided to move closer to his mom so he sold the house for R300,000 (US$18,000) to a buyer who then turned around and sold it for R600,000 (US$36,000). 

 

This incident triggered his interest in property. 

 

He started going to auctions, looking for cheap properties, when he got there his perception of money was forever changed - he arrived at the auction and saw guys in Orlando Pirates and Kaizer Chiefs (South African soccer teams) t-shirts, buying 4 properties. 

 

He befriended them and started asking them for advice on selling and flipping houses and they shared their knowledge with him. 

 

A year later, he took some of his money and also borrowed money from his mom and bought his first house at an auction. He made a R60,000 (US$3600) profit from the sale of the house. 

 

After that, he went and bought the wrong house twice and was able to make R224,000 (US$13,400) profit from the sale of one of the houses. 

 

One day his sister, Candice Van Wyk (Episode 17), received an invite from the Rich Dad seminar, it was here that he learned about cashflow and deal analysis, which started him on a buy to let strategy and a focus on creating monthly cashflow. 

 

Click play to listen to this week's episode and leave us a note in the comments section below. 

Episode 53: Why it is important to get your mindset right before you start off on your investment journey

Episode 53: Why it is important to get your mindset right before you start off on your investment journey

September 22, 2020

In this week's episode, we talk to Dr Herchel Clarke, a doctor, about his property journey. 

 

Herchel started his property journey in 2017 in Windhoek, Namibia, where he bought his first property thinking it was a good investment. 

 

He shares how he started his investment journey thinking he could only afford 3 properties in his lifetime and how after buying his first property, he realized something was wrong because he suddenly had more month than money and found himself worse off than when he was a student living off of R1500 (US$90) a month. 

 

Just after buying his property in Namibia, he was offered a post in Cape Town, South Africa, and met a couple that introduced him to Dave Ramsey's book - "The Total Money Makeover" which helped him understand his relationship with money. 

 

One day he stumbled on Robert Kiyosaki's "Why A students work for C students", which lead to a total paradigm shift for him and started him on an inner journey. 

 

He soon understood that in order to change his external circumstances, he needed to change within. 

 

Click play to listen to this week's episode and leave us a note in the comments section below. 

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