 Hello everybody and welcome to the end of week 7 of the 50-day property challenge brought to you by EWF Property Academy and Private Property. Today we'd like to show you a few clips of our discussions with Jared where he is nearing the end of his first property purchase and because he is nearing the end we thought we would discuss with Mayor de Waal our attorney on what the process is of transferring a property from one person to another. So let us first listen to the discussion we had with Jared and then we will hear what Mayor de Waal had to say about the transfer process. Today we only have Jared in the room and we're going to be talking to him about a number of things but mostly especially where he's at with his challenge at the moment in the 50-day property challenge. So we are now in week 7 already wow the time has flown on Jared. Definitely listen it's been quite a journey and it feels like it's happening so fast but keeping in mind 50-day challenge so it will feel like speeding through and as mentioned before we're still learning so much but it's been exciting to actually see myself entering the space en being able to actually make work you know as you know Nigel we rang the virtual bow and I'm very excited to say that pretty soon I'm entering the transfer process which through previous conversations I'm sort of familiar with but of course I'll be tapping into all of you just just to guide me a bit further so that's starting off and at the same time you also did tell me that I have to find another property and that it was a property I didn't think I would be interested in it is slightly out of my price range sitting at 1.4 mole 1.399 and it's a heritage property there's a lot of history attached to it it's a four bedroom it's got big grounds of about almost 3 000 square meters so it's got the right I'm I think I'm really interested in creating abnb opportunities especially as tourism opens up and I'm really interested in the property but like I've mentioned to you it's it's it's out of that price range that easy price range where you can just grab something quickly so I needed to ask you and your team to help me figure out how to acquire the funds I know that as we've joined it we've spoken about speaking to the banks or getting your funds from other people using other people's money which always sounds like the favourite to me and so I just need to learn a bit more about that but I'm excited that I'm on this journey and I really want to capitalise on all this information that I have and and build the portfolio over a period of time but I'm reaching the goal I'm just happy that I got started with all of you guys so all right yeah wow that's awesome so I mean I'm very glad that you know we got in the first half of the of the program you got to a point where you were ready now uh putting your offer to purchase the cash that's available between yourself your wife and a couple other friends which in in effect is one of the ways to raise capital um and using other people's money is getting friends and family involved so that's just one of the ways that you that you can raise money for for the project like this um and I'm and I'm very glad that you are now in that transfer process later on uh this week um or today maybe even we'll have a chat with Mayor Duval where we'll talk about the transfer process and how that works and so that you can also be enlightened in terms of of the entire process very often we as buyers and sellers even don't see what happens in the back end where the attorneys and the title the title deeds the deeds offers all of that kind of thing so I want to just showcase that to you and to the public so that you guys also know what's going on in the back end while you sit and wait and twiddling your thumbs waiting for your transfer to to happen so so I'm very very chaf that we are almost there and I think probably based on the timing we're probably this week already you will take transfer um yes and yeah so so sounds sounds like we are there we're almost there almost about the impossible in the beginning of all of us yeah so is for everybody watching on this journey with us um you can see that it is possible you know it's just about having enough knowledge and knowing exactly the kind of portfolio that you want to vote and while in the property game is where it's at you know it's uh diving in now you know because as things open up I can physically see prices changing properties have maybe dropped in price during the pandemic have now started sort of balancing out to where they were before um so now's the time it's quite amazing to see that in your limited knowledge of the property sector the kinds of stuff you're talking about the fact that the that the market is levelling out and you clearly have done a lot of research in terms of the markets and so on I look on the app so I am watching it all the time I bookmark some properties so you can see the changing and we're engaging with with the the agents that are representing the properties they themselves will give you transparency on this what it what the value is a dropped to x amount and there are forums as you've mentioned before where you can check what what the property what the rate it is going at if a drop if it in what the property is around that specific property are sold for just to give you insight into maybe what you're getting yourself into and if it's a good area to to invest in you know is it dropping is it increasing is it just due to the pandemic or has is the area becoming a sort of the area or is there a decline of people moving out and these are all very important things that I've I've seen through listening to all of you and through all the many features within the edpf academies website that you can tap into to make sure that you're making informed and insightful decisions so I'm grateful I mean I can't believe I'm saying all of these things because a few weeks ago I was as green as an avocado you know and now now we are talking about property and it's quite cool to see that in a matter of weeks you can you can be part of the conversation you know yeah for sure and even even green avocados when you cut them open you leave them a little bit they become brown so you are now clearly seasoned of the couple of weeks of being on this on this program and and we hope that you know through the the three years that you are still going to be with us that you will learn so much more and that you'll be able to grow your portfolio to a substantial size before you leave this program in 2024 at the end of 2024 yeah so anyway so you asked me a question in terms of capital and how you now start to expand your portfolio so your your situation is that you don't earn a fixed income rich makes it very difficult actually and people might think honor is a celebrity he's got lots of money that's far from the truth so that's the reason one of the reasons you came to us is to say I'd like to start my property portfolio but because I don't have a fixed income the banks are not inclined to necessarily look at me as a as a potential person to to invest into from a property investment perspective so how do I then as somebody who doesn't have that fixed income how do I now find the money if I can't raise the money through the bank so let's have a quick dive into that we don't have to do a deep dive today but if anybody wants to do a deep dive we've got some videos free videos on our website www.edpfpropertyacademy.com they can go to the website for the deep dive but let's just talk about some of the typical ways that you can raise money for a property investment opportunity okay so you can chill a little bit let me do some talking and then we'll have a chat again after I'm done so obviously the first way to raise capital is the bank so if you have a steady income whether that is because you've got a job or because you've got a contract with an organization or if you just have like you have gigs all the time and you've got steady income then flowing through your accounts every single month what the bank will then do is they will look at your lowest and your highest and then for the last six months and then they will do sort of an average of what your your salary is or your income has been for those few months and then they could even use that as your repayment ability what they will then also do is to if you have now after like was a double yen for example mat al she has already purchased two properties and we had a conversation with epsilon last week where they have they are busy now working with her to say by because you bought two properties already we're going to help you in your third property and beyond to use what they call their future rental income product so even even if you don't have steady income or if you don't have a salary the bank could still help you with different products that they have but but if the bank cannot help you then what we then do like you did with your first property that you've now purchased and you're just waiting for transfer basically your first thing you do is go to friends and family i last week and this week in fact two weeks in a row now i have done an exercise with the students in our program where i've asked them to literally just take their phone i've got a very funky cover it's all green light green and everything take their phone and take the top 10 names where they think that those people possibly have money to spend and want to invest into something but don't have the time and don't have the energy or the wherewithal to understand where to invest but they have the money and the exercise was quite because what then happened all the in the first week that we did this exercise two weeks ago a group of second years in the program they started phoning i gave them 45 minutes on a saturday to phone about five or ten people and within 45 minutes almost every single one of them came back with a positive answer of almost everybody they phoned to say yes i can invest in something like this if you take the lead you find the deals for us we will co invest with you and the minimum that that any one of those students was able to raise was 750 000 rand and there was some that raised that was able to raise a lot more in 45 minutes on a saturday so imagine how much if you have all this time with all your contacts and your phone book and you start making those phone calls to say you in this edbf program you want to raise capital for your projects and i've now you've now got this new project that you want to do it's over a million rand so it's out of that price range that you were initially looking for but it does fall within that category of a b and b and those kinds of things that you want to do so if you pick up your phone and you start phoning those people on your phone that's listed on your your database and you start calling them and say listen i'm looking to do this thing i'm finding the deals if you co invest with me in a company that we register then they get a share in the business so that's one way friends and family then another way that you can raise money is vendor finance now a lot of people ask you know it sounds so complicated what is the sting called vendor finance effectively vendor finance is when you use the seller's money to finance your purchase which sounds insane i mean how i would a seller pay you to buy a property from them but it's possible in this game what you do is you go to a seller and you say to them look i've got this this ability to convert opportunities and i've learned all these things from the edbf program and what i want to do with your property is to take the property and convert it into an a b n b type scenario over a period of time i'm going to pay you back i'm going to pay you number one a rental which will be the normal rental and what they call an occupational rental so i will occupy the property and i will rent the property from you for say 20 000 random amount whatever the number is then take that property and then you go and rent it out to other people on an abnb system now on abnb you can make a lot more money than if you're renting it out to an individual or a family so then the profit you make of the abnb that's your profit but then you take that profit and you then actually put that back in again and you continue to pay the owner the landlord of the property the owner of the property and over a period of say five years you can then pay back the entire amount of money that you then owe the seller because he has now sold to you on almost like a lease agreement but you know when you buy a car when you buy a vehicle you finance the vehicle over five years and you pay the bank over that period of time you can do the same as property and they register in deed's office against the title deed the fact that you have now purchased the property on the spaces and that over the five year period you would then pay the owner or the seller the full amount so instead of going to the bank for the money you're saying to the seller i'm not going to pay the bank i'll pay you and you actually use this property to generate the income in order to pay it back yes but that's obviously subject to to the reasons for the seller wanting to to put the property on the market you know so it's obviously they want the cash front if they need the lump sum but that sounds pretty good because i think the property that i saw is quite new and i've already spoken to an agent of course it's in the career so i can't just get there like this afternoon to go in view but that doesn't sound like there's a rush for the sell and that might be a worthwhile conversation to have so thank you for sharing that so now that we've heard from Jared in terms of his property journey let's listen in on the conversation we had was made about regarding the transfer process there is so much that goes into that process and the attorneys have to do so much paperwork so that they can transfer the property from a seller to a buyer so let's hear what Mayor Deval had to say today was Jared and Matt Al we have in the room the very famous Mr Mayor Deval my favorite attorney in Cape Town he's been involved with the edpf program for close on five years now where he is teaching our entrepreneurs in the program everything they need to know about the legal aspects of property today we've asked Mayor to talk to us about the transfer process as you know Jared has now bought his first property and Matt Al is about to buy her third property and while they wait for the transfer to happen into their names we just thought maybe it would be good for us to talk about how that transfer process happens because as buyers and sellers after all the paperwork is done we sit back and we wait and we're not sure what's going on in the background so we thought maybe today we would talk to Mayor and ask him from the day we signed the offer to purchase what all the processes are until the day we actually take transfer so i'm going to be quiet now and i'm going to let Mayor talk and if there's anything that i think we need to maybe clarify i'll then interrupt him and ask him to clarify that particular issue or topic so Mayor all over to you our audience know you we've already had some conversations together so no need to really introduce yourself this time but Mayor just tell us all about the transfer process so now you've paid your your your attorney has drafted the transfer documents for the seller to sign also sign affidavits and transfer duty declarations for the buyer to sign instead of a meeting to go and sign the documents in the meantime the bond attorneys will be instructed by the bank that you should improve the bond and they also draw documents after they've received the property details from the transferring attorneys and they will prepare the mortgage documents to sign it's normally a fixed stack of documents to sign some banks have gone into electronic signature which is really great because you get a stack like that documents to work through and it's it's quite intimidating documents because you're signing waivers you're signing indemnities it's a lot of documents in that and luckily we have a condensing attorney needs to sit with a client and explain to them all the ins and outs of that and the main thing is that you've got to sign a debit order as well and that debit order dictates which time of a month the debit will run off your bond account something to remember is that if your bond is registered on the seventh or the tenth and you indicate it on the first just keep extra money in your bond account in case the bond goes off and never think that ach worry and don't worry it's not going to go off make sure you don't want to skip your first payment one once the bond is is is registered and the debit order goes off so now now we've looked at the transferring attorney gras to power the attorney the seller's documents apply for rates apply for the size documents and if it's a body corporate or a home owned association involved then you're also right to lead to the body corporate or the HOA and informen that the property has been sold and usually there's a condition in a particular sectional title act that you can't transfer property unless provision has been made for the payment of the levies to the body corporate the condensers provides the certificate ones that the arrangement has been made or been paid and then you are able to lodge the deeds in the deeds office remember that i said there are three types of attorneys involved the transferring attorney the bond cancellation and the new bond register a new bond registration so the transferring attorney will phone in all the attorneys and say tomorrow we are going to the deeds office please give me your documents in before we go to the deeds office they all meet outside or in a particular room and you get the deeds of everybody and the transferring attorney then links up all three transactions by writing on the on the outside cover that this transaction that one and that one are linked with each other but put them together put them in a box at the deeds office and then the deeds office will go to the sorting room in the sorting room the deeds office will then pay all the documents to give that out together en they will go and pull the information that is on the deeds office system to check are there any interdicts against the property maybe somebody brought an interdict against you selling the property we also check that you haven't been sequestered we also check that the property details are correct and they print out all that document and put it in the folder that goes through the scanning process with a barcode and then that gets put on the trolley then and goes to the sorting room the sorting room will then go out and dish it out to the junior examiners the junior examiners normally got a day or two to go through all the documents make sure that all the documents are there it's now the power of attorney the new d the rates clearance the trans duty clearance the levy clearance and also your old particle d and any supporting documents that go over that once they gone through that they send it back to the sorting room and that takes another three four days they scan everything luckily we can track every transaction in the deeds office through the scanning and then it goes to the senior examiner they also make some notes on the inside of your file if they do find that there are typing areas or documents missing and if there's a huge document missing or error they'll put a big r on it now that you don't want to see in your life because it's the army rejected and you never want to see a rejected so because then you get embarrassed you've got to phone your clients and say oh i made a mistake and i've got to do something again en they are errors that come through it human that sometimes documents are not there that's supposed to be there or these officer makes a note and say i'm not sure about what you're trying to do here can you come and explain to me sometimes you find that they just reject the deeds rather than asking the question when the deeds come through to the final examiner on level three and then they normally after 10 14 days they appear in the preparation room what we call short but prep room we need to appear in the prep room everybody your clock at the deeds office will pick up the deeds and find the offer and say hey the transfer of Nigel to mea just came up for registration today and there's a bond to be cancelled so we find the bond attorneys we find the cancellation attorneys to say okay are we already that we can hand in for registration the next day over next day we have five days in the preparation room the prep room to organize the finance sometimes the seller over buy must pay you a little bit of fees you need to collect a short from the purchase price in between that time the estate agent normally has also arranged electrical and beetle and other compliance certificates and that's also sent to all the parties so sometimes there's a hiccup where one of the compliance certificates are not issued and then you've got five days to sort out those small items sometimes big items and once everybody is ready ready and the secretary in the office and the condensing attorney then prepares the final finances you prepare one for your file to see that the money that came in and the money that's paid out will balance very important the second one is what money gets paid to the seller with on date of transfer that condensing attorney will pay the money over to the seller less what has been paid to the bond less what is paid to the agent so the attorney will do all those payments and facilitate all those payments and then important that they have the banking details of the estate agent and also the ffc license of the estate agent and also been the seller's banking details and by that time the bond of the purchaser will kick in that money will be paid through buying guarantee into the bank account of the transferring attorney so they will collect all the money do all the reconciliations and then they will pay out to everybody who needs to be paid out and do a final reconciliation of finances and present that to the seller and the buyer and also for your file because it's critical that your file ends up in a zero that is once you've taken your piece so that's very much in a nutshell the conveyancy process now the deed's office goes out and the conveyancing attorney appears in the morning between 9 30 to 10 o'clock appears at the deed's office we'll be in front of a that's now one step skip but you appear in front of the deed's office to a register of deeds to sign the deed which you call the execution of the deed and once you execute the deed then it means actually it's not like you're cutting off somebody's head like execution but the deed's office where the register of deeds also signs the deed they also put that on the tracking system and then they after that they keep the title deed for about a month or two or three sometimes depend on the turn around times en then they capture all that information on their system that electronically you are now also indicated that you are a new owner and the old owner has no longer owner so that takes about that data capturing take the few weeks and then the title deed's on return to the to the conveyancing attorney if a buyer was a cash buyer you'll call the buyer and say yeah congratulations here's your title deed and you must now please put your title deed in a safe place the reasonable safe place is that in the old days you could just ask the deed's office for a replacement copy if your title deed is lost and they'll issue a title deed when they became kind of fed up with people are losing their title deeds and they always say you've got to advertise in the government because they end the local newspaper and that takes about a free that's about a three week period so you lose time plus you cost you about four and a half hours ran advertising cost so please if you have a title deed put it in a safe place if you have a bond over the property the attorneys will send you a copy of the title deed and they'll send the original to the bank because the bank keeps that in safe custody as the security until you have paid up the bond so again what flows from this is again your world whenever you have bought the property go and review your title deed go and review your insurance because you got to ask it now if you have a mortgage make sure that you have insurance that can settle the debt on your date of date which you don't want to leave that debt to your family they may have to sell the property if you haven't if you haven't got insurance to cover it sometimes we find that husbands and wives are married the husband is economically active the wife is stay at home mum and now the husband dies and the wife's got to sell the house because they didn't take out insurance to cover the debt if you've got a cash if you bought cash then obviously you've got cash on the then if you don't have a mortgage to repay but keep that title deed in a safe place and then again look at your will to redraft we also provide that service for all edpf members we give them free service for a new will so please make contact with us that we can actually also assist you with a free will and that's me a wrap up on the condensing process i think i've most likely covered quite a lot in that few minutes wow that's fantastic and listen i applaud you for the patients that you show i mean i see it every day attorneys have to have extreme patients who are clients who literally know nothing about the process don't understand legal documentation don't understand the implications of the legal documents that they sign and often i see it more often than not where a document gets stuck in front of somebody's face and they just sign without even thinking so i applaud you and i thank you for the service that you render to us as edpf and our students as well as the public at large but for now may i thank you very much for your time it's always a pleasure having a conversation with you because literally every time i talk to you i learned something new and i know that our students and the public out there with this 50 day challenge has learned quite a lot about the transfer process what goes into it and all the legal documentation and the processes it is absolutely amazing how you guys cope on a daily basis with us so thank you maya for your time thank you for the public out there that listen to us diligently every day on this 50 day challenge we are nearing the end of the challenge now it's the reason why we thought we talked about the transfer process because it is something that you have to understand you have to know when you do a property purchase or even a property sale that you have to know these things and understand what goes into it so that you don't get frustrated when it takes three or four weeks longer than you thought it would but thank you maya thank you private property for allowing us this platform for the edpf property academy to run this 50 day challenge and thank you to you the audience for diligently watching us thank you maya for that extremely insightful discussion thank you everybody for joining us on this journey and at the end of week seven we hope that you've learned so much that you are able to purchase your first property within the 50 day challenge