Episode 103: How to go from a negative cash flowing property to raising R9 million (US$571,000) for a property development
In this week’s Property Magicians Podcast, we talk to Thabo Mongoato, a father of 3 boys and a full-time property developer and coach.
Thabo started off as a pharmacist then did his MBA and worked in various fields, until 3 and a half years ago when he moved into property full time.
In this podcast, he shares how property has always been his passion but he invested in property the “wrong way.”
He bought his first property to have a roof over his head – the interest rates were at an all-time low and rent and mortgage were the same, so it made sense for him to buy.
The second property was an investment decision that went wrong, he attended property training courses that taught him that the property he buys doesn’t have to be cashflow positive and that property appreciates over time and he believed them, but then the property started draining his cashflow and he ended up selling it at a loss after 5 years.
When he had to leave his last corporate job, he realized that needed to think about wealth in a different way. He started reading a lot and attending seminars and workshops and learned about property and the right way of doing things and started flipping and moved into development.
After a few months of coaching, he attended an auction in Boksburg, bought a property, flipped it and made a profit of R151,000 in 5 months.
He then bought a development, which was a half structure for 84 units, which looked straightforward on paper but ended up taking 3 years to develop because of Covid and rising prices.
He is currently working on another development in Braamfontein in Johannesburg and has raised R9 million for that development.
This is another eye-opening podcast.
Click play to listen and leave us a comment in the comments section below.