 everybody to the first day property challenge brought to you by the EDPS property Academy and private property. Once again, we welcome our friend Janet Ricketts and Matt Owl. Unfortunately, Matt Owl is not here yet, but she will join us shortly. And when she joins us, we will also talk to her about what she's done in week number four. So this is now day 20 of our challenge. We are at the end of week number four. And we just wanted today to catch up with both Janet and Matt Owl to see how they're doing in their journey. Because this week and a bit of last week was about learning about property investment fundamentals, learning about property management, learning about how to find good deals, and a whole range of other things that they've learned about. But at the end of the day, these last two weeks has been about them going to look for property opportunities for their property investment portfolio. So today, right now, we've got Janet in the room with us, and I'd like to just ask him a couple of questions about where he is acting in his journey. So sit back, relax, and enjoy this discussion that we have with Janet and Matt Owl. All right, so Janet, welcome back to the 50 day challenge wrap up for week four. Janet, tell us about this week. How's it been going? Tell us about, I know you've been looking at some properties. Tell us about those properties a little bit. Tell us about the journey you've had this week. So it's been an interesting week. I mean, for me, I really had to zone in on making some kind of decision, although, you know, there's so many properties out there, and you can so confuse sometimes because, oh, you could do this or you could do that. But I really had to take some time to understand what it is that I want and how I want to see my property develop. And I decided that because we are in quite a popular holiday city, Cape Town, I went with holiday accommodation. So I sort of toss the other option aside, and this is what I've been zoning to. And I'm really excited because it's in an area that I really aspire to get a property in. It's in front of and it's a three bedroom and it's quite ideal for that kind of usage. And so I'm chatting to the agents. It's a different kind of fire altogether, because it's part of a, let me show what the term is, but it's got clothes or its own little estate. And so the great thing what I enjoy about it comes with its own cleaning staff, if you could call it that, comes with its own maintenance team. Of course, there's a levy. And I think for me in the lifestyle that I needed made a lot of sense because I don't always have time to attend to those things, you know. And so it seems like the right fit for me. And we are at right now. So I'm quite excited to see you guys. Yeah, we've been chatting with Jared here about his journey and thank you Jared so far for what you've discussed with us and the catch up that we're doing. But I see Matt Ellis joined us. So I just would like to welcome Matt to our wrap up for week four. Welcome Matt to week four wrap up. I'm hoping that you had. Hi. I know you've been extremely busy at the SABC doing recordings and stuff. But we will catch up with you right now as soon as we are done discussing with Jared. But if you want to maybe just say hello to the audience. Hi everyone. Sorry I'm late. Ronald Leighton never glad to be here. If you're Brandy Briggs. Yes. With the, you know, we've done work. Yes. Got a job, getting paid. Yeah, getting paid for the change. Yeah. Yeah. All right, cool man guys. Okay. So Jared, we're talking about your property investment opportunities that you've identified. So you've gone through quite a number of opportunities but you decided to focus on a particular area and that being sort of the A, B and D kind of scenario where because we are in a tourist city being Kaitan, you've chosen the French general French area because a lot of people enjoy going there. There's the wine routes and all of that sort of thing. So this property that you've identified how far you now in the journey in terms of finalizing the deal. Why is it that you chose this particular property? Tell us a little bit about the property itself. How many bedrooms and what is it that you want to do with the particular property? Sure. So the property, we are in the process but I'm chatting with the agent and viewed it. I'm going to go and view it again. But we are back and forth with just discussing a few things on the property. You know, the footsteps thing did pop up. So I had to just make sure that what I'm getting is what was advertised. And the wine shows this property as you just mentioned all the amenities. It's about taking full advantage of the wine routes in Kaitan and not just foreigners but even the locals in Kaitan love to spend a weekend there. So that's why I decided to put it option for me. And I'm going to be just assessing the structure making sure that everything is good. It's a three bedroom. It's a brick home. It's got a garden. It's got, as I mentioned before, it's got the cleaning staff. It's got security. It's got maintenance staff. And so for the lifestyle that I lead, as mentioned, my wife and I, you know, it's quite suitable for us because we don't really have to have our hands on every single thing. You know, we also have an agent that is stationed within Farnshire. We'll also be renting it out for us and making sure that that side of the bookings is handled because I can't imagine me having to go back and forth with emails and this is wrong and that is wrong. No, that's not me. I'm doing other things. And so I need someone who can do them. So it really suits. I think it suits where I'm at, but also I think it's really going to define the kind of portfolio that I developed from here on out. Hmm. So it sounds like you've made a decision. This is, it looks like this is the property you're going to go for. Yes. And I'm crossing my fingers. It's, it's, it's a scary thing, not so because yes, it's happening. And everything that we've discussed is now coming to the fore. But I've made my notes. I had my little notebook with me and I'm asking questions left, right and center. This property is on a farm. And so it does come with its own sort of individual set of, what's the word, see it's slipping my mind, but legalities and, and, and its own processes of how you, you purchased the property. So I'm learning, I'm learning, but right now it's making a lot of sense. Yeah. So one of the other things that we spoke about over the last couple of days is financing. And we've had many discussions you and I about how your income isn't really set because you're an artist and your income only comes when you actually perform. And when you're performing, there's no income. So with, with that, obviously it's difficult to show the bank that you have a consistent income in order for them to give you a bond. So tell us a little bit about how you're overcoming that problem and, and whether our discussions about other people's money has helped you at all. Yeah. So, so, um, fortunately for me, outside of music, I do have a couple of other businesses. And so there is an income coming in there, but the income sort of amount fluctuates. So there's not one set amount that makes, sometimes I make double triple, you know, sometimes it's just the one business operating depending on the seasons and the need. Um, fortunately, for me, you know, my wife and I invest together quite often. And so she's tapping into her savings as well. And we're also going to be chatting to a few friends as well, if need be, but between the two of us, we are looking at how we can tap into other spaces as well. So, so, um, I'm, I'm quite confident that we'll be able to do that. That's awesome. Listen, I, I'm genuinely holding thumbs for you because I'm really excited about this journey so far. I mean, only 20 days in and you've already decided on the property that you want to buy. And in fact, as, as much as I can remember from last week's discussion, you actually have a second opportunity that maybe, if we finalize this one, we can possibly even do a second one before the end of the 50 days. Who knows? Listen, I'm just trying to pace myself. But if opportunity arises, definitely as we've mentioned throughout this course, I think it's important that, that we as young South Africans are able to tap into this market and really capitalize while we can, while the market looks the way that it does. We are recovering from the pandemic and so as much as prices are going up, it's quite slow. So now's the time. I agree with you fully. I mean, the fact that we sort of nearing the end of the pandemic, they sort of have this thing under control now, prices are slowly starting to increase. And you don't want to get to a point where once the prices are at its peak again, you then want to jump in because now the prices are good. I want a piece of the pie, but that time it's too late. So I think now is the ideal time, just like you said, now is the ideal time for anybody who wants to get into the property space because the market is on the up. So I think if anybody is out there listening to us, and once one to two or have been wanting to or wants to in the future invest in property, I would say now is the time because we are on the up in terms of the pricing and you don't want to get to it when it's too late. So Jared, thank you very much for that little bit of an update on where you are at. We are very at the EDPF. We are very excited for you and the fact that you are this close to finalizing your very first deal. And with your own money and other people's money, I'm sure that based on the discussions we've had so far, you will be able to get this deal over the line before these 50 days are over. So hey, listen, yeah, thank you. I just want to also add what the public also has to understand is that I am married and so I have the, I would say, unfortunate that my wife and I both work. And so we do have dual income that can help unlock opportunities as well. And so I think not for anybody else to get to Sartre, this is something we can all do. And just a matter of looking at what you can afford. What if you're just by yourself and you need to purchase something? And it doesn't have to be a grand property. It doesn't have to be a holiday accommodation. Start with an apartment that costs you 300,000 grand if you can afford that. And that's how you start. We all have different starting blocks. And so I don't think it's about comparing who's getting what. It's not about looking at other people and saying, hey, I'm not there yet. You're on your own journey and you're defining your own property journey. And so you have the luxury of deciding how you want it to start, you know, the way it looks now in a couple of years is going to change. You know, your investments are going to work for you when you can unlock bigger and better opportunities. So I just wanted to share that with everyone as well. Some sides advice there from a novice in the property space. So the time that we spent together clearly has paid off and I'm very glad that you've learned all these things in this very, very short space of time. But having spoken about starting out on a low base and not wanting to reach for the stars immediately, let's jump over to you, Matt, because that's basically what you've done. You have not reached for the stars and bought the 10 million grand property. Not that you could afford it, but you decided to go in at a low base so that you can number one, spread your risk, have a diversified portfolio and be able to grow much quicker because you are looking at a lower, lower end of the market rather than the very high end of the market. So your two properties, you've told us already a little bit about your two properties that you already own. Tell us now how you are fading in terms of your journey to get your third property. Tell us what you're looking at at the moment and how far you are with deciding which property you want to buy. Cool. Thanks so much, Nigel. I think I'm really just trying to build off the base that I already have. So as you know, the previous two properties, I think the one, the first one I got for 440, but at a market value of 600. So that was a really good deal that I got. And then the second one, it was a 1.5 bedroom that I got for 360 in Arcadia, which because of the square meterage in this space, we managed to renovate and actually squeeze in another bedroom and still have space for lounge area for people to be able to relax and chill. So I'm really just going off pretty much the same formula, shooting low again. My price range in this case is 300 if I'm lucky, but I'm really looking between 350 and 400 maximum. I have spotted quite a few because in that range, I do get a lot of two bedrooms that pop up in the area of Arcadia and sunny side, but I'm specifically looking more towards Arcadia for this one. So there's a lot of 1.5 two bedroom. I think really what's driving my decision this time is again, the square meters of the property. Anything above 80 square meters is really good. Potentially there was one that I also saw at I think it was 102 square meters. So that's pretty massive for a two bedroom apartment, which again, there was one that I saw it's already been renovated to maximize because that lounge space sometimes is so big that you could actually renovate it to fit another single bedroom, single bedroom and obviously still having good closet space and the study area desk where you can actually do your work. And again, still allocating space for leisure where there's a TV for people to relax and do whatever they do. So I have, unlike Jared who's already found his place, I'm still, I've probably got a top eight right now and I think it comes off the history where either in cases where I go view, sometimes I get beat by a cash buyer. So I need to have other options and also because of the pictures online, they're not, they're not always as good as it seems. So I've only managed to see two of the eight so far. So for the rest of this week, that's what I'm planning to do because I'll actually be around Hadfield and Pretoria tomorrow. So I will squeeze in hopefully another three because agents also get busy. And then hopefully over the weekend, I can view the others. But I'm literally on a top eight, all of them are ranging between 345 and the most I had was 420. But all with similar characteristics, either 1.5 or two bedroom with square meters of about 80. So that, like he said, being cash flow positive from the get grow because also with the levees on those properties, it's not too bad. I'm looking at about between 1.4 and 1.8 max. And then obviously still accounting for the bond repayment that I would have to make of about 4,000 or more. Obviously looking at the interest rate as well, that's just gone up. But so far, all of them in terms of just being a two bedroom or a 2.5 bedroom already cash flow positive. Yeah, the rental income that's currently coming in is either square with the levees and bond or just the there's actually a little bit extra that's left over. And the other thing I'm looking for is a prepaid apartment. I learned that was a learning from my first place. It wasn't prepaid and you get the bill at the end of the month and you think what's going on. So I ended up putting a prepaid meter in there. So yeah, now it's prepaid. So even with these, I'm looking for prepaid apartments. Yeah, so that they can handle and sort out yeah, the electricity bill amongst themselves as they go. And then I really do have a company that has been managing the other two. So I'm looking at potentially just slipping it under their management as well, because we've had a really good relationship in the past three, four years. So that's where I'm at. Yeah, it's like there's so many properties in Pretoria. It's just, of course, finding the one that will suit my needs currently. And like I said, I'm not doing this if it's not cash flow positive from the get go. So yeah, I just have to go view as many more as I can. Yeah, so clearly you've learned a lot in terms of the whole discussion on cash flow positivity. Yeah, yeah. And to do things that's going to put you into a pickle, like for example, having massive parties and using the electricity to an extent that you don't know which way to turn because your electricity bill is more than the income that you're getting. So that was a very wise decision that you might take in terms of the prepaid meters. And I would suggest that for anybody. If it's possible, in some cases, some municipalities do allow where you even put a prepaid meter for the water. Any few municipalities allow that. But if you can, I would even suggest that because water is something that can get out of control very quickly. I remember a house that we owned not so long ago. We had just taken transfer of the property. And in fact, it was the house that we lived in. And we moved into the property. And the first water and rights and taxes and all the other bills, municipal bills we received was $125,000 in four months. And nearly died. I was like, what is this? And we looked at it and it was the water bill. And what had happened was there was a leak underneath. And nobody knew about it. And the water was just seeping away down into the ground. And by the time I got my bill for the first time after four months, the bills are $125,000. So these things, you need to be very careful in terms of how you manage these things and make sure that you keep a handle on it. And the property management company is a very good way to do that because they know what to look for. So I'm very glad that both of you have decided because of your busy schedules to rather go with the property management company to look after your properties for you. Because it is so difficult even for somebody who isn't busy to look after a property if you don't know what you're doing. Now, you guys are extremely busy. It even works because all of a sudden things are happening at your property and you don't know about it. The water is leaking. Your tenants are not telling you because he doesn't care or she doesn't care. They've got water, so it doesn't matter to them. And you're paying the bill, so they don't care. So it's good to have these management controls in place. And I'm very glad that from a property management perspective, and this week we learned from David DT how to manage our properties properly. And I'm very glad that David came to speak to you guys about how to manage your property because you guys have made that decision and said, you know what, this is too much PT for me. Too much outgrew of me. I'd much rather have my passive income and let a property manager look after it for me because there's just so much work to be done. If you have the time, obviously, you want to get your hands dirty so that you can save that maybe six, seven, even sometimes 10% property management fee. But I think personally, I don't look after my own property because it's not worth it for the effort and the time I'd much rather try your property manager myself. So Matt, I'm very glad that you've been able to now reduce your number of properties that you're looking at because I know you saw a lot of properties that have been able to reduce that just after eight. I'm very glad for you. And hopefully in the next week or two, you'll be able to narrow that down to one or two and then make a final decision. And then once that is done, let me ask you this question off the cuff because we never spoke about this beforehand. I know I spoke about it with Jared because he wanted to know about funding the deal and so on. How are you going to fund once you make a decision? Let's say you found a property of $340,000 and you've already got two properties. What is your decision in terms of how you're going to fund that property? Nigel, I'm really hoping that you're going to teach me how to secure this property with other people's money. Honestly, but I think for one, obviously I'm very like I'm fortunate in this case to already have a record of rental income coming in from the other two properties. So one, that is motivation to the bank that I really have two investment properties. But like Jared said, we work in a space where November, you are getting millions and then December, okay, let's say it's December, you make millions and then January, like the clubs ain't hiring what's going on. So now you're living on December's income and you're starting again. So it's my bank statement in terms of my company income, like it fluctuates. But I think the fact that I do have that steady rental income that comes in every month to already show the bank that, listen, rental income is coming in. So it's not going to be like an additional bond because those two properties already are funding themselves. But I think for people who genuinely have never started, don't even know where to start. They don't even have savings, for example. I think that's where we are going to figure out how to use other people's money for this. Awesome. And there's no need to figure anything out because in actual fact, we've already spoken a little bit about that particular method. And if you remember a couple of days ago, maybe a week or two, Miguel came and spoke about there and not to give any free advertising to any bank, but apps have this very unique concept called future rental income product. And you've now really purchased your property. So you in fact qualify for that particular product where after two properties, they will no longer only take into account your income, but they will actually look at the property that you want to buy and see what the future projected income is from that property and then be able to give you a loan based on the income, the future projected income of that property. So you in a fortunate position now we asked the two properties, you can actually qualify for that product, which is phenomenal. So not only your own income plus the income of your two existing properties, also the income of the potential income of the third property, you'll be able to qualify. But you and I will have a long conversation about that and make sure that once you've made your decision, you, Miguel, Adi and I will sit down and we'll work a plan to make sure that before this 50 day challenge is over, that you get qualified for that particular product so that you can get your funding without any hesitation from the bank. All right. That's nice. Sounds great. Okay guys, that's all the time we have for week four. So unfortunately, this conversation has been stimulating to me. I'm really enjoying this first day challenge and the fact that now in day 20, we are so very, very close to both of you being able to achieve the goal that you set for yourself at the beginning. So we are excited. I know you guys are excited and I really want to thank you for being part of this journey. Thank you for joining the EDPF Property Academy and Private Property in this 50 day property challenge. And to you guys out there who are watching us on a regular basis, don't forget to subscribe to the EDPF YouTube channel and also to check out our website edpfpropertyacademy.com so that you can follow this journey where we post every day. We post for the 50 day challenge what we have done on that particular day. So this session on Friday night at office, this session is really just a wrap up. If you really want to understand and know every single part of what we are trying to do, go to our website and watch every video for each day and follow this methodology and hopefully you too can become a property investor. For now, this is Nigel, Matt, Alan, Jared saying goodbye and thank you from EDPF Property Academy and Private Property. See you next week.