Property Magicians Podcast

Episode 115: Unconventional Real Estate

In this week's episode of the Property Magicians Podcast, the hosts, Vangile and Dr. Miranda, of the show do a show talking about unconventional ways to make money in real estate. We cover 7 unconventional ways to make money and most of it doesn’t require lots of money:

 

1. Grazing Land- leased

If you have land, you can lease that land to farmers who need land for livestock. We talk about the model that Livestock Wealth employs in KwaZulu Natal, where they lease land for their farmers.

 

2. Subletting land for agricultural use 

We talk about a model we saw being utilized in Sri Lanka where farmland was subleased to grow ginger and turmeric for a food brand and how that contract led to a R250,000 (US$17,000) revenue per annum for half an acre of land.

3.  Cemetery

We discussed a Facebook post we saw from a status update from one of our previous podcast guests where he shared about a friend of his who made money by buying land and getting it rezoned to a cemetery. He sold the land to the municipality for 10 times what he’d bought it for and he also makes money from managing the cemetery.

4.  Rental Arbitrage

Renting a place and then subletting it, just Like you do on Airbnb.

5. Self-Storage

Leasing our storage units to people - you spend a small amount of money on electricity, sewerage and water. Your main expense is security.

We talk about how to make money by storing Take A Lot packages in South Africa.

6. Unconventional office space

Office space isn’t just big buildings in cities owned by large corporations. You can also have various types of co-working spaces or turn part of your house into a conference or event space and make an extra stream of income that way. 

We share how to get started with that.

7. Parking

Not all land has to be used for building properties, some land can be used for parking, which can be very lucrative in crowded cities. 

 

This is another jam-packed episode. 

 

Tune in!

Episode 114: Creative ways to fund property developments without bank funding

In this week's episode of the Property Magicians Podcast, we talk to Matimba Masinga, a Soweto-born entrepreneur, father and husband.

He started off his journey at a young age - working in his father's business. His father was a demolisher (used to break down buildings).

In 1984, his father opened the first Black owned furniture company - he recycled materials he got from demolishing buildings to build furniture.

He was drawn to real estate because of the work his father did - he would see his dad
demolishing beautiful houses because developers wanted to build town houses or office parks, which fascinated him and when his father bought the Saturday Star, newspaper, he would look at the property section and tell himself he wanted one of those.

He promised himself that when he started working he'd go into property and build township rooms.

When he started working he bought his first property for himself to live in; in 2010 he got a
lumpsum somewhere and decided to buy a delapidated flat (apartment) at auction.

He then renovated and partitioned the flat and got tenants.

In 2012 he bought a property using his credit card.

The first year and a half nothing happened with the property - the property was sitting there and he was paying off the credit card debt.

He got two of his friends to partner with him on the property, but the relationship didn't go well and he ended up losing a friend and a business partner.

He then decided to build multiple cottages on the property and asked his aunt and brother, who were in the same business as his father, were able to supply him with second hand building materials for the entire project and he was able to pay them off little by little.

This was the beginning of his property development journey. He then decided to look for like-minded people and joined the South African Property Investors Network where he met other investors.

They pulled their resources and started buying and investing in properties as a collective.

They started flipping properties together, which worked very well; he would then take the profits and put them back into whatever development he was working on.

This is another gem packed episode.

Tune in!

Bonus Episode: Raising over R2.6 million in the stokvel and changing our name

In this week’s episode, we share a recording of the webinar we did for the stokvel members updating them on deal number 5 and the name change of the stokvel.

 

We started off by explaining the Mission and the Vision of the stokvel and that the name of the stokvel has officially changed from Wealthy Ones Stokvel to Property Magicians Stokvel (PMS). In the webinar, we explain why we had to change the name of the stokvel.

 

We also give an update on Deal 1 which happened in Oct 2021 and shared the challenges that Villa Lisa was experiencing like theft of tools and material, security being injured on-site as well as rain continuing to cause additional delays. But that does stop our investors from receiving their payout in Oct 2022. 

 

We looked at the total amount of money raised (R2.6 million/ US$177,771) in the stokvel since its inception, we also took investors through deal 5 and explained the due diligence process so members understand what’s required for a property to be worth investing in.

 

• Property Investor Credentials Management Accounts
• Asset to secure the loan
• Finance application for a new building
• Timelines of securing finance from an institution (Bank)
• Dependencies

 

We also explain the concept of a Hard Money Loan which means a loan that is backed by a “hard” asset, such as real estate and explain the pros and cons of this money lending process.

Episode 113: How to work with a quantity surveyor to increase your profits and decrease expenses

In this week’s podcast episode we talk to Malepeli Malataliana, a Candidate Quantity Surveyor (QS). She was born and raised in Lesotho and moved to South Africa in 2012 to study at the University of Pretoria.

She is also an MBA graduate and has a financial literacy interest and an interest in getting people to become financial adults.

 

She explains that a quantity surveyor is a construction accountant, they tell you how much the construction is going to cost, how much you’re going to make per year from the project, they are also the link between the developer and the contractor and they are the contract manager.

 

A quantity surveyor manages the contract and makes sure that the contract is understood by both the contractor and the developer.

 

We’ve had a QS on the show before but this episode is completely different to that episode. Malepeli answered the following questions for us:

- How did you decide to study Quantity Surveying?
- What is a quantity surveyor and what does a Quantity Surveyor do?
- Why should ordinary real estate investors have building projects for small projects?
- How do you negotiate and navigate building projects when you have a friendship with the contractor?

- What is a JBCC (Joint Building Contract)?
- Is there a difference between a resident or commercial quantity surveyor?
- Can beginner investors team up with a QS to help them build their tribe in the industry?

- Are Quantity Surveyors taught how to mediate and negotiate for the clients at school or on the job?

This is another eye-opening episode and we recommend you grab a pen and paper so you can make notes as you listen.

Click play on the audio below to listen to this week's episode.

Episode 112: Growing a construction company by 400% in 10 years

In this week’s Property Magicians Podcast, we talk to Brinny Mphogo who was born in Thembisa and raised in Blairegowrie. In 2012 he started working with his dad in the construction company he founded - ABV Construction.

 

They focus on residential, retail and commercial buildings and he has been able to grow the business by 300-400% since taking over from his dad.

 

When he started in the business, all he knew was that he knew how to sell. He focused on getting clients because he knew that his dad knew how to service them.

 

A lot of the clients gave him a lot of opportunities because they knew his dad. The first project they did was a wall in Randburg and it ended up collapsing on the client’s Alpha Romeo. He learned a lot from that experience and started working with his dad on the site to learn about construction so he could learn how long things take and how to get things done well.

 

They have since become known in the business for being time conscious contractors.

 

There is a body that regulates contractors, where contractors are graded based on what they can handle.

 

He explains that when working with contractors, you need to have a good team in place: hier a quantity surveyor who will monitor the contract. The QS will also work closely with the architect. You should also look for a completion certificate, which tells you the number of jobs a contractor has finished.

 

Brinny is also a real estate investor - he owns land and property in different provinces in South Africa and they all have different uses.

 

This is another eye opening episode. 

Tune in and let us know your comments.

Episode 111: Investing in property straight out of college & owning a 9 unit property at the age of 28

In this week’s Property Magicians Podcast, we talk to Anaiyah Robinson, a 28-year-old mom and full-time real estate investor residing in Atlanta, GA, USA.

 

Anaiyah comes from an entrepreneurial family and started investing in real estate straight out of college, after being invited to a free real estate seminar.

 

From the seminar, she was able to learn how to use real estate for retirement and to pay for her kids’ education. The first house she bought was an investment property to fix and flip in 2017 - she sent out mail, via direct mail, to out of state owners and she ended up buying the house under contract.

 

She paid for the house through a hard money lender but had some hiccups - she ended up changing contractors 5 times but she ended up making a U$15,000 profit.

 

After that project, she was supposed to go to South Africa but she didn’t want the money to sit in the bank, so she loaned that money out and ended up doubling the money and making an extra US$20,000 from loaning that money out.

 

After that, she moved into the rental property space and bought her first rental property in 2018. She got a loan for first-time homeowners and bought a single-family home and converted it into a duplex. She also ended up getting a single-family unit for her and her family.

 

At the end of 2021, Anaiyah ended up getting a 9 unit multi-let for US$590,000. The bank financed the property for US$438,000, so she ended up selling her duplex and used the money she loaned and got an extra loan to make up the US$182,000.

 

She is currently renovating the multi-let, they plan to get every unit done within 4 weeks. They will also turn one of the units into an Airbnb unit.

 

This is another eye-opening episode. 

Tune in and let us know your comments.

 

Click play on the audio below to listen to this week's episode.

Bonus Episode: Raising R268,974/US$17,935 in 7 days to invest in property

In this week’s on the Property Magicians Podcast, we share a bonus episode where we talk about the Wealthy One's Property Stokvel and how we raised another R268,974/US$17,935 in 7 days so we could invest in our third deal in Secunda, Mpumalanga.

 

At the beginning of February 2022, we invested R568,150/US$37,882 in a deal in Boksburg, Johannesburg.

 

This time we are loaning money to a developer who is looking for R3 million/ US$200,000 to build affordable houses to first-time homebuyers in Mpumalanga, South Africa. He has funds from the bank but has to put down a downpayment. 

 

We have partnered with Sakhisizwe Stokvel and together we have raised R2 million/ US$133,351 for the developer.

 

In this podcast, we share more about the deal and how you can get involved in the stokvel and grow your investment portfolio with us.

 

Tune In

Episode 110: Buying 3 positive cash flowing multi-lets during a pandemic

In this week’s podcast episode we interview Eddy Mokobodi who is married to Emily Mokobodi. He and his wife are the owners of a solar energy company and they also invest together.

 

Eddy always thought he’d be a medical doctor, but one day he picked up a pamphlet at the Wits open day and it spoke about construction management so he signed up for construction management and fell in love with the building part of property.

 

When he started dating Emily, she mentioned that she may end up in property and he realized she may be the woman he would marry. During lockdown 2020, they got a mentor and decided to look for properties that could be converted into multi-lets.

 

Their coach helped them structure viewings and understand how to read lightstone reports; they viewed 28 places, sent out 12 offers and ended up buying two properties at the same time (these were their first properties) and got 100% finance.

 

They renovated the property, and because Eddy comes from a construction background, they had access to construction companies so the process wasn’t as difficult. By March 2021, their units were fully occupied.

 

After that they took a breather and focused on their respective properties. Later in 2021 they purchased another multi-let and they had to get pre-approval for the property.

They got approval from the bank in 3 or 4 days for the next property, which they’ve just taken possession of.

 

Tune in to learn more.

Episode 109: The magic is in your mess

In this week’s podcast episode we interview Gavin Mkhabela who grew up in the North West with his great grandmother. In 1992 he went to live with his mom in Alexandra, Johannesburg. He then studied accounting at Wits Tech but didn’t finish because he went to work.

 

He worked for the bank in the homeloans department and moved into the property finance department, where he worked as an analyst to the deal maker. In the podcast he shares how his not good enough wound stopped him from taking up a mentoring opportunity to learn more about putting together property deals.

 

Even though he was working at the bank, he didn’t think of property investing. He was more concerned with a roof over his head and having his own bedroom. 

 

He got into debt in his first year of working at the bank in 2004 after signing a lease agreement for someone he was dating; the lease agreement was double his mortgage. This debt then snowballed, he got into more debt to keep afloat, and he soon found himself in even more debt.

 

By 2011 he was so stressed and panicked about debt that he ended up resigning from his job. He started a cleaning business and decided to make cleaning sexy and brought in a business partner. That business eventually fell apart and found himself over indebted and blacklisted.

 

The only job he could get was to be a financial advisor, which was commission only.  He started advising people on property. He met a client who was struggling financially, and had a house and 2 back rooms and a garage. He then advised this client to rent out the rooms and the garage and he started making R13,000 a month. 

 

Word then spread and he got more clients and he found himself teaching people about property and soon changed his life and his finances.

 

Tune in to learn more.

Episode 108: From rural Limpopo to building a multi million rand property portfolio

In this week’s podcast, we interview Daniel Matsapola, a space scientist who works at the Space Agency. Daniel is originally from Limpopo and is married with 6 children (all girls). 

 

He started his real estate investing journey after reading “What the rich teach their children that the poor don’t” by Robert Kiyosaki and he went ahead and purchased his first property on the eve of his first trip to Australia.

 

He got married and divorced in the same year and in the same year he also lost his parents which led to a paradigm shift for him and he realized he didn’t know what he was doing in property. He found a mentor online, Dr Hannes Dreyer, and attended his free seminars, bought his training CDs and the relationship then developed into a mentorship.

 

In the mentorship he realized that his first property wasn’t profitable, so he sold his property and made R150,000 (US$10,000) in profit. He then used that money to buy another course from his mentor.

 

By the 5th year of working, he had bought 4 properties in his name. In 2005, he bought a 5 year mentorship and an opportunity to learn how to turn R1,000 into R10 million. His mentor turned his R1,000 into R10 million in 2.5 years.

 

In 2008, he left Cape Town to live in Pretoria, and lived for free because his tenants were paying his rent.

 

In this episode Daniel teaches us how to consume in order to produce and how to do estate planning.

 

We actually cannot explain in depth what this podcast episode is about and how life changing it is, you just have to listen for yourself.

 

Tune In!