 Okay, let's begin ladies and gents. First of all, a very warm welcome to the virtual property show hosted by Prava Property. My name is Andrew Walker and I'm going to be with you for plus minus the next 20 minutes. Now ladies and gents, I can only assume that you are here today or watching this specific video because you are either a first time buyer or perhaps you're looking to buy your next investment property and you could be stuck. You're not quite sure how to take that next step. You're lippin' it right now. Are you a beginner? Are you starting out in property? And what are some of the things holding you back in property? Let us know. You know, some of the most common questions I get is, you know, I want to buy a house, where do I start? Some other questions we get up, what are the risks and how do I avoid the risks? Property investment does have risks regardless how we look at it. And what are the questions, what are the right questions that you should be asking if you want to buy the next property just to make sure that you do get it right. You actually make money off your first time. In fact, that's a very common question we always get. Should your very first property be an investment property or should be the home that you live in? And it's a debate to be had. What I want to share with you today, some of the pros and cons of buying your very first investment property. And here's the thing, ladies and gents, if you're not aware, there is a lot of legal stuff, the offer to purchases. What if something goes wrong during the buying process? What if there's an issue with the tenants not paying rent? There is more to this than meets the eye. And that's why I always say, if you want to get into property, you need to get the right education and understand what you're actually getting yourself into. And a very big thing that I find, and you may or may not agree with me on this, but when you're starting out, when I started out and bought my very first property, I had lots of fears and emotions. What if it goes wrong? Should I really be buying my very first property? And often emotions and fears is what stops many people actually investing in property. So here's the thing, ladies and gents, there's three main things I want to cover with you today. That is, why anyone can invest in property. And how do you overcome some of these fears? What is the reason? Why are your emotions and fears holding you back? And then what does the winning formula look like? And also what I'd like to share with you a little bit later on is an awesome success story from a lady called Toneel Peterson, a 24-year-old from Cape Town buying her very first Bartlett and Joberg. So stay tuned right to the end because you really want to hear what she's got to say. Before we get into the meat of the content, let me just give you a quick interest of who I am. My name is Andrew, as you already know, and I'm from Edenvale, Johannesburg. And yes, I have been investing in property for a number of years here in South Africa, but it never used to be like that, ladies and gents. In fact, I grew up here in Edenvale, east end of Johannesburg. And I used to be a sound engineer and I used to love it. I was working long hours. And I used to love what I do, but you know, when I started working seven days a week, I just realized that I asked myself the question, is this what I want to be doing for the rest of my life? And at the age of 25, I just knew I needed to change. So yes, I bought my very first property back in 2001. But it was really in 2005 when I made that decision to go, do you know what? I want to get out of the sound engineering industry. I want to change my life. I want to do something different. And at that stage, I was living in London, in the UK, and I decided just to get educated. So I put some money on the table, I got myself a property coach. I got some education. This is back in 2005, and a long story short, I built up a property leading agency in the north of England. And I moved back to Johannesburg in 2013, where I decided to get into the South African property market. I became an estate agent here in Edinburgh, in Joburg. And I started buying and selling properties here in South Africa. And through that experience, that is where the SA Property Investors Network was created. That is where the Property Academy was created. And I've been going around the country, inspiring, educating and helping people get onto the property ladder and to help them build successful property portfolios. Now some of you may or may not know who the SA Property Investors Network is. Just very quickly, the SA Property Investors Network is a national platform of like-minded property investors, individuals like you who are getting started or you have wanted to properties and you might be feeling stuck. So we enable that. We give you the tools and the resources and the know-how. And yes, we are part of it, very proud to be part of it with We sponsor by the likes of Because I'm sure you'll agree with me that property is a people's business. That's who you know. Are you connected to the right individuals in the property space? And that's what we do at the SA Property Investors Network is we connect you and we give you the tools and resources. And as that is happening, ladies and gents, I realize that property is not as easy as people may think it is. Yes, I can, you know, one can go to any state agent and buy a property and they may or may not make some money or they may get a good buy. The property investment is a bit more than that. It's understanding that all the different strategies. It's understanding that, you know, we can get into Bartolets, multilets, student accommodation, developments, commercial Airbnb, installment sale agreements, the list goes on and on and on. And with each specific strategy comes different pros and cons. And that's where the education comes in. That's where you really got to understand. And I'll talk about this later on. What is your winning formula? What is your plan? What is your strategy? Because once you understand that, you'll start getting into depth into what area should you be investing in? And who's going to support you along the line? Will you need a property coach? Do you need a bit more education in the specific sector? Because remember, you have to understand the property market. You've got to know the basic fundamentals of property and you just may need a property coach. It depends where you are in your journey. And that's what we created, ladies and gents, the SF Property Investors Network and the Academy to help and support you, to make sure that the next purchase that you make is going to be a positive cash flow property if you are looking for cash flow, or perhaps it could be a property, who knows. What I actually recommend is after this video, make sure you come see us at the exhibit stand at the SF Property Investors Network or the Property Academy and come have a chat to us. But let's get into this right now, ladies and gents. Let's get into why our most first-time buyer is fearful. Why is it, you know, what are they actually scared of? Now, what I've realized through my journey is regardless of property or anything, a lack of knowledge always leads to a lack of confidence. And if you don't know what you're getting yourself into, there's something called the fear of the unknown. It's a very common fear. I'm sure you've got that fear. I've had that fear. I still have that fear in certain things that I do in life. If you don't know what you're getting yourself into, you're going to lack confidence. Just think about this. If you want to become a pilot, for example, are you going to jump into a plane, get into the cockpit and start flying a plane with no training? Of course not. You're going to get trained. You'll spend years and years and years getting trained to become a pilot. So what's different with becoming a professional property investor? If you want property to be your career, you're going to have to spend some time educating yourself, taking it one step at a time. The problem with most people in property is they jump and they start buying properties, but they don't know what they're getting themselves into. And therefore they lose money and they say property doesn't work. Or they sit on the sidelines going, I want to jump into a property but I don't quite know what might happen. The problem is you're probably trying to do this by yourself. What you'll realize is, if you set the going, I'm scared to get into a property, here's my advice to you. Do not go buy a property. Just yet. First get the education, understand the pros and cons of, if I did buy a property, what could go wrong? If I did buy a property, what could go right? If I need to get out the property, what are my exit strategies? Let me understand the offer to purchase. You see, once you start understanding all of that, when it actually comes to buying your very first property through a portal like private property, it makes the process so much easier and less stressful. So that's what you've got to do. Write that down. Just understand what your plan is, what is your strategy, and how can I execute it? What's the, what do I need to know about that strategy? What can go right and what can go wrong? Cause once you understand that, you start saying, hang on a minute, this isn't as scary as I thought it was. And that's the reason why most people are scared is lack of confidence. Now think about it. You know, I just, I sat there thinking, what are some of the pros and cons of actually buying a property? Can you think of any? Let me know what some of the pros and cons are. Okay, so I've got there. Look, one of the pros of starting to build your property portfolio is you're starting to build your wealth. Just make sure that you do a bit more due diligence on the area and the property. This is where TPN, write that down for me, TPN and Lightstone come in. So a pro is, hey, you're gonna be buying your very first property or your next property investment. You're starting to build your wealth. And remember the great thing with property, if you get it right, you're starting to build cash flow today and you're gonna start building the equity for the long-term. That's where your real wealth comes in. Is property is a long-term game, not a short-term game. One of the cons though, is you have to acknowledge that now if you are taking out that very first bond or getting a second bond, you are now responsible for that loan. So even if your tenant does not pay rent, you've still got to pay that loan. And that is a responsibility that you're taking on for the next 20 years. So look, if you are worried about that and you're worried about what if the tenant doesn't pay rent, look at certain companies like Sapn Drive, Expello, Rentmaster. Look at the different insurance companies out there where you can insure against that specific loss. What about another pro? So a pro to me is, by you actually getting on the property ladder and starting to pay your bond or a tenant pays your bond, you're starting to, at least you're paying down a bond and you're not paying down someone else's bond. So again, you're starting to create wealth because other way, you either have to rent a house or you're going to buy a house. There's one or the other. So you know, rather my view has always been rather pay off your own bond or get a tenant to pay off your own bond rather than renting from someone else. That's my opinion. Another kind of thought and I said to go, what are some of the risks I've had in property? One of the risks I've had in property is what about maintenance, general maintenance, I'm renting a property out and you know, 10,000 rands coming in as my rent and I'm paying my bond, I'm paying my rates and levy is great. So I break even as an example, I'm making a small profit and then bang, I start getting hit with maintenance. Well maintenance, depending on the maintenance that occurs on your property, in a lot of cases it falls under your lease agreement. So now you're liable for that and you're going to pay for that. So you're going to make sure that you do have a budget for general maintenance on your specific property. Very important and this again is where people go wrong. They don't run their numbers. They talk about the rent covers the bond. No, the rent must cover the bond plus maintenance, plus levy, plus rates and taxes, plus management fees, plus extras like general maintenance. What about voids? You see, that's a common mistake that a lot of begin investors make is they don't take all of that into consideration. So just keep that in mind. Let's just have a quick look now at, you know, again where people do go wrong is they don't take all the costs into consideration. They know they can get a bond but they don't understand what are some of the costs involved with that. So here are some of the costs. When you're buying a property, you need to know that you can transfer fees to pay. We have to pay a conveyancer to transfer the fee from the seller to your name. And what about bond attorney fees? If you are taking out a bond, you'll have to then obviously pay the bond attorney fees, the bond attorney being appointed by the bank and the transfer fees being appointed by the seller in most cases. And transfer duty, of course, if it's applicable above a million round, that is just the tax we pay to the stars in the property game. And you may have to pay a deposit. The banks may come back and go, boom, you get 100% but what if you only get 90%? You then have to put a 10% down. Now, let's take this property as an example. This is Copper Park here in the Eastrend of Johannesburg. 980,000 is on the market with private property. How do you know what your buying costs will be? It's very simple. There's various property calculators on the private property portal and various other calculators that you can go on. You type in your property price, 980,000. You can set up, is it a freehold? Is it sectional title? Are you applying for 100% bond? And it will then tell you, well, look, if you ought to buy this property, your cost that you're gonna have to find are around 53,000 grand. The question is, do you have 53,000? So these are some of the things you can do before you go buy the property. Make sure that you're good for the money. Now, how do you know if you qualify for a loan? You don't wanna spend all this time not knowing that you can't get a bond in the first place. There's various different ways. You can either go to a bond originator and a bond originator will do a pre-qualification on you and take you to all the different banks or you could go direct to your bank. For example, one of the banks I really, really love at the moment, my personal capacity is Apsa Bank. I've got a load of success stories with our students who are getting great bonds through Apsa Bank and myself included. So ladies and gents, and I think if I'm not mistaken, Apsa Bank are here, this weekend with us. So keep a close eye out for Apsa Bank. Now, with the bond originators, the great thing, like I said, is that they will go to all the different banks for you, Standard Bank, Net Bank, FNB, and they will try to get the best rate for you. Now, you're probably wondering but how much does it cost to get a bond originator? Well, bond originators, from our perspective, are free. Bond originators get paid by the bank. That's the great thing is you don't pay them anything, they get paid by the bank. Now, if I was to buy this property, 980,000, I know what my buying costs are, but what's that going to cost me on a monthly basis? So this is a great thing. I can now go onto one of these calculators, tap in the purchase process and select 20 years over say 7.25 or whatever the interest rate is right now, and it's going to tell me what the monthly bond payment's going to be and can you really afford it? And this is where you must not get caught out. You see, interest rates are low and everything looks hunky-dory. How's the reality, ladies and gents? I don't know when, but interest rates will go back up. So when you're running your numbers, whether you're buying your very first home to live in or perhaps it's to invest, and so you might look at the figures right now and go, yes, my rental income is 18.5,000 or 9,000, so my bond payment's only 7,700, that covers expenses. Not if when interest rates go back to 9, 10, 11%, that monthly payment's going to be shooting up to more like 9,000, 10,000, now you're in a negative cash flowing position. So this is something you've got to be careful about. The other thing are legal structures. When it comes to investing in property, are you buying in your personal name, are you buying in a company, are you buying in a trust? And you've got to get this right because what you don't want to do is go build a property portfolio. It's in your personal name to realize maybe it should have been in a company which is owned by a trust or the shares are owned by a trust and now you're going to stop moving properties around. So before you go buy your next property, make sure you consult an attorney like Bruno Samau. By the way, he's also here with us this weekend. Go look for a company called Bruno Samau Attorneys or Intergen and go get some advice from an attorney on that specific case. And the other thing is, you know, how do you know what to offer when you're offering on properties? We spoke about all the trying to fees or buying fees. Another place where people get caught out is what about your holding cost? What about the renovation involved? What about your levies, rates and taxes, water and electricity? This is what I call all the hidden costs in property for the beginners. You need to make sure that when you run the numbers that you include all numbers. You don't want to miss any numbers out. In fact, this is something I talk a lot about on what's called the SA Fundamental Course. Write that down for me. The SA Fundamental Course. We have thousands of South Africans on that course. People who are buying their very first property and individuals who have a couple of properties. And this is where you will start getting the right type of education. Now, some of the tools and resources that you will all need are tools and resources like Lightstone and TPN. Now, why are these important and how do you get access to them? So the reason these are important is to get access to Lightstone and TPN is when you are busy buying a property. We've spoken about it before where you need to do your due diligence. You know, who owns a property? When did they buy the property? What is the estimated value of the property? Start looking at other factors, you know? In terms of, are you, in terms of the owner, are you really speaking to the right owner or are you speaking to someone else? What is the size of the earth? What's the full address? Look, this Lightstone report gives you anything and everything about that property. Obviously, it won't tell me the conditional property, but it starts to tell me, it shows me a graph, it shows me a map of the property. It starts to show me all the sole prices in that specific area. And it starts to give me a very good idea as to what am I actually buying? And that's the type of research that you need to get into. Always do your research before you buy a property. Now, when you do become, either write this down an intermediate or a professional member with the SA Property Investors Network. Write that down for me. Intermediate or professional member, you will get unlimited reports with Lightstone and 25 TPN reports every single month. So whether you are buying your first property or you're looking at a lot more for investment purposes, you have access to the right tools and resources for that. Let's just quickly touch on the winning formula, ladies and gents. You know, what is a step-by-step process in this? Well, I want you to look at this. I spoke about this earlier. What is your plan? What are you looking to achieve? Why are you getting into property? Once we know what your plan is, and we do have an individual blueprint, we do have an individual blueprint for that, we can then look at your strategy. What type of property are you looking to buy? Do you need to buy? Is it going to be for student accommodation? Is it going to be for multi-let? Is it a basic bi-let that you want? Because once we understand that, we can start choosing an area where that strategy works. And once we have the area, we then need to look at a marketing plan. Write down the deal finding work group for me, the deal finding work group. If you don't know what I'm talking about, come see us at the Property Academy stand. And now think about it. Your marketing is out. All the leads are starting to come in. Because yes, we will go out to estate agents. There's other ways of finding property deals not just through estate agents. So we'll start getting the leads coming in and you then need to start analyzing the deal. Now you may be a beginner and you may not be sure how to run the numbers. What I'd like to offer you today is a very basic cash flow spreadsheet. A one page is showing you how to run the numbers if you are to buy the next or buy your first or next bar today. Would that be useful, ladies and gents? If we give you a free basic spreadsheet showing you how to run the numbers. And if the numbers make sense and your lifestyle report makes sense, you view the property and you have to have the property, we then proceed to offer on the property. And this again, you've got to be careful. We've got to make sure we've got the right suspense of clauses in your offer to purchase. So this is where you definitely want to have either a property coach looking at it for you or perhaps it may be that you're part of the professional mastermind. We just get somewhat to bounce the offer to purchase over because people do get stuck on this offer to purchase. And that, ladies and gents, for the majority of you is your winning formula. Now I did say that I wanted to bring a lady called Taneel Peterson at an introducer. So this is Taneel. Taneel found me on the internet a while back and Taneel really wanted to get into property. The problem is she's 24 years old in Cape Town. She's a teacher. She knows nothing about property. You know how and where does Taneel get started? And we've had an awesome journey with Taneel. Ladies and gents, let's see what Taneel's got to say now. Hello, my name is Taneel Peterson and I'm a 24 year old, first year educator and I teach a lovely bunch of great for children. I'm also a property investor and this is just the short summary of my investment journey so far. My investment journey started in April, 2020 when I met Andrew Walker by a video call. He spoke to me about the Property Academy which offers various courses about property investing. And then he also spoke to me about SAPIN which is a network of South African property investors that I could work with in the future. Five months down the line in September, 2020, I have officially secured my first property investment, a two bedroom, one bathroom apartment in Kempton Park that will be paying for itself. The past five months have been incredibly busy for me. I've had to learn new things, practice them and set things up for now and my future. I completed the fundamentals course which is a 12 module course offered at the Property Academy and it teaches you the basics of property investing. So I had to learn how to run my numbers, practice it, go out to properties and determine whether the property was worth pursuing it or just leaving it as is. I had to go out and practice all of these things that they were teaching me on the course. I also set up my own entity. So I set up a company for my properties as well as a property trust to make sure that my investments made now and in the future will be kept safe. And then the last thing I've done recently is setting up my website and social media pages. And this is to generate leads and to ensure that my company is making an income at the end of the day. All of these steps that I've done along the way was because of the guidance and the education I received from the Property Academy and the various people that I met along the way at SAPIN and the Property Academy. In my parting words of wisdom, I'd like to leave you with a quote by Amelia Earhart. The most effective way to do it is to do it. Thank you very much. So there we go. That's to Neil Peterson, ladies and gents, an awesome success story. So we're coming towards the end of this. This is what I encourage you to do. There is something called the Free Accelerator Course that leads into the essay fundamental course. The Free Accelerator Course is gonna give you some awesome videos around running numbers, creative finance, how did Neil get started while Neil went through the Accelerator Course. So ladies and gents, there is a link in the box. Click the link, make sure you watch it, it is for free and it's gonna give you a really good insight into getting into property. And at the same time, ladies and gents, please come see us at the Exhibitor Stand at the Essay Property Investors Network as well as the Property Academy. Now that is our 20 minutes up. I hope you got some golden nuggets out of that. And if you have any further questions, we've got loads of downloadable content. We've got that very cool bar to let calculator. There's a Free Accelerator Course and my whole team is waiting for you. But if you have any questions right now, feel free to ask them.