 Okay, let's get started, ladies and gents. So first of all, this is gonna be all about flipping properties in South Africa in today's market. And should you be flipping properties in this market? That's what I wanna be talking to you about today. But first of all, welcome to all you attendees to this virtual property show, hosted by our private property. My name is Andrew Walker, and I'm gonna be your host. We'll call it the next plus minus 20 minutes, talking about flipping properties. Because as you already probably know, there's a lot of different strategies, different ways of making money in property. You know, that's flipping properties, of course, students accommodation, multilets, commercial, Airbnb, developments. There's so many different ways. And I always say to my students, the more you learn, the more you earn. Don't try to go out there and do all the strategies at once. Look at your personal circumstances, your personal situation. Look at what you wanna achieve in property, and then you need to choose a strategy that's gonna help you achieve your goals. Now have you sat there, and it could be that you don't have a lot of capital. It could be that you need to create capital. Flipping could be an option for you because by going out there, and even if you don't have the capital to do the flip, there's means and ways of, what we teach at the property academy and the asset property investors network, in terms of how can you raise capital from another investor? How can you get the seller to finance the property for you? There's different ways of financing a property. And the great thing is, when you do get the right education and you understand what you're getting yourself into, you know, whether you're starting out and you make 110,000 grand profit or say 240 or 410, it really depends on the deal and what price you're picking up for. You've got to ask yourself, why do you wanna flip properties? There's different reasons. You don't just go flip a property because you wanna flip a property, no. It could be that you've got some bad debt and you're gonna use flipping properties as a strategy to pay that debt off. Or perhaps you wanna, you know, reinvest that and you wanna go, you know, flip a property, maybe just, even if it's two properties a year and you perhaps you make a few hundred thousand grand, you know, that could pay for your transfer attorney fees, your bond attorney fees, transfer duty on your next rental property. And it could be that you've got a residential bond that you're looking to pay up or perhaps you just wanna have some fun with this. You know, always say, when you make money and the more money you make the more you can do and that's where you get options and property. Now, ladies and gents, get yourself a cup of coffee, get a pen, get some paper and take loads of notes. What I wanna be covering today, and there's a lot I wanna cover, it's gonna be possible to cover everything about flipping properties in 20 minutes. So what I wanna do is go very fast, give you as much content as possible and then I'm gonna invite you to a free webinar where they will spend more like an hour to an hour, to an hour and a half going through this in more detail. So let's have a look at this. How are we gonna flip properties in this market? I think is the biggest question. And what about COVID? Because yes, COVID has affected the market. You know, and like I said before, should we actually be flipping properties in this market? You know, typically speaking, people do say, you know, buy when the markets are low and is the market low? Of course it is. You know, is there lots of uncertainty? Of course it is. So buy when the markets are low and sell when the markets are high. What about though, ladies and gents, if we can learn to buy properties below market value and that could be, you know, different circumstances. It could be that there's a deceased estate, that there's an unfortunate financial issues. What about divorce? What about immigration? You know, there's different reasons why we may be able to pick a property up below the market value and then for a quick sale, we set it below market value. So there's enough profit in there for a first time buyer or a first time investor where they can get some equity when they get into the deal. So because I'm thinking about, you know, when we do get into a flip, how can we actually profit off of that property? Because I can tell you, ladies and gents, that if you go out there and you don't run the market, the future market value of the property, if you don't take all the hidden costs, and yes, for a lot of beginners, there are a lot of hidden costs that you need to know about. You don't want to miss that because just, and I've seen it before, just by getting that market value wrong or not taking into consideration, you're holding costs and write that down for me. What are my holding costs? Yes, it's very easy for you now to go to U-Banko, yes, my buying costs, my transfer attorney, bond attorney, transfer duty, there could be auction fees involved, we can easily add that in. But when you do, and if you do take transfer, what do those holding costs look like and how long do you anticipate holding onto that property? That's a different question and a different story altogether, because yeah, that's the thing. If you get that wrong, if you don't take your holding costs into consideration and you get the market value, the sale price wrong, even by five, 10%, that could be your profit wiped up and you may end up with what we call a white elephant. You're all excited, you get into a property deal, you're like, wow, that's my first flip and I'm gonna make loads of money and then you come out on the other side going, A, I've actually made a loss. You don't want to be in that position. You want to be in a position where actually you're getting it right from the out go. You know what the risks are, you know what the holding costs are, you now know how to run the true market value of the specific property and now it turns into a cash machine. Now you're literally printing money every single year. You just got to know where to buy and what to buy but we will cover that. I mean, have a look at this guy, Saphiso. So I've known Saphiso for a number of years, you know, I took him under my wings, one of my, he's one of my coaching students and I've helped Saphiso do multi-lits, bar-to-lits. He's paid off some of those properties already and one of them was a flip. Just here in the east end of Johannesburg, Rhodesville, Kempton Park, it was a deceased estate through Omniland which is an auctioneer and you're going to be careful when you start dealing with these type of auctioneers because they want to use their OTP with their clauses, with their terms. So make sure that if you're off flipping properties and you can't use your own OTP, in fact, I'm dealing with one right now through a voluntary liquidation and yes, I can understand why they want to use their terms of course but the terms also need to work for you so don't just go sign any odd offer to purchase, read through them, speak to your property coach, go to your attorney and find out. And this specific deal, if we have a look at the numbers, you know, he paid 470,000 rand for the property. Now that's quite a good price for that property. Got it way below market value and he sold the property for 1.1. In fact, the market value was higher. It was more like 1.3 million after the renovation. So he did do a renovation to this specific property and he walked up to 214,000. That is a cha-ching, ladies and gents. He could have made more if he had of hold on, but I said some look. Flipping properties is about cycling money. Money in, money out as quick as possible. Write that down for me. Cycle your money. Get into the property, out the property and into the next one as quick as possible. Look, he was happy with 214,000. I mean, what would you do with 214,000? And that is just the property. Here in Roadsfield, came to park. The CC state was empty. It needed a few hundred thousand rand spent on it to bring it back to life, to modernize the property and it was perfect for a first-time buyer coming along. He could have made probably more like 400,000, but at the stage there's a good offer on the table and if someone puts a good offer on the table and you can still walk up to some money and there's a little bit of profit in there for the next person, that's what I call a win-win situation. Now, what I've realized with flipping properties both here in South Africa and in England, it's not, I can't say it's not for beginners, but I wouldn't suggest trying to flip a property if you have no background, if you have no experience, if you have no support. Look, if you don't have an experience in the property market and you come across a potential property flip, don't go try to do it yourself. It's not worth making the mistakes because remember, you pay your school fees either way. In property, it's a guarantee you'll pay school fees either way. You're rather gonna try to do it by yourself and think you know what you're doing but remember, you don't know what you don't know and you make a mistake and you lose and you could end up losing a few hundred thousand. Or you just get a bit of education. Put yourself through a property course. There's plenty of property courses out there. You don't find a property course which is all about flipping properties. Understand the different ways of doing it because once you really understand how to do it, you will make less mistakes. So it's up to you if you wanna pay your school fees and mistakes or do you wanna invest in yourself? Do you wanna get the knowledge and the support? And when you do go do a flip, at least you have someone to call and you have a baseline of education. So ladies and gentlemen, before we get into it, let me maybe introduce myself. I can see I do recognize quite a lot of you which is fantastic but there are some new names on there. So just for the individuals that don't know who I am, let's just go through that very quickly. Nice hot cup of coffee. My name's Andrew Walker. Of course, as you know, I'm from Edenville, Johannesburg. My past life, I used to be a sound engineer. I used to love it. I went to Edenville in high school. I went to Edenville, big into sports, rugby, football, cricket, excuse me. And yeah, I became a DJ. And I used to do that full time off the school, study sound engineering. And I used to love it. The problem was though, is that when I was doing it seven days a week and I started missing social parties and I started just missing out on a lot of social, I put it that way. And I found myself working seven days with thinking about what DJs do. I got a sound rig, I got a video rig. I was always setting up and taking down. And I just thought to myself, there's got to be something, there's got to be something else out there. I can't keep working seven days. What will happen if one day I get married and have kids and while I'm married to Simone, I've got two kids, Logan and Scarlett, seven and nine years old. What happens, I can't keep working seven days a week. It just doesn't, it didn't sit right with me. So I was looking for something else. And that's where property came along ladies and gents. And that's where I really, you know, back in 2001 I bought my very first property. And through that, that's where, you know, after buying my first property and selling it, that's when it really, that's when the journey really, really began for me ladies and gents. And look, over the last number of years since I've been back from the UK since 2013, I set up the property academy and the property academy, think about it. It's almost like Wich University, right? Where I believe that if you want to become a pilot to fly a plane, you've got to go study it. You have to pay your school fees. You have to spend years and years studying how and learning how to become a pilot. It's no different to property. You've got to invest in yourself and you've got to really understand what you're getting yourself into. Because if you do do that, ladies and gents, that's where the big, big chiching comes in. And that's what the academy is all about, is empowering you and giving you that information. Because like I've just said, ladies and gents, do you think I've always been a property investor? No, I haven't. Like I said to you, bought up at Edenville in Johannesburg with the boys. I was just an average guy going to Edenville in high school. And like I said, I was working seven days a week. But this is what property can do for you. If you take it seriously, if you feel property's for you, property can literally change your life. You've just got to take the next step. And that's how the property academy can help you. Whether you're looking for online courses, whether you're looking for property coaches, whether you want to join a 12 month program with the academy, where someone can literally hold your hand. Whether you're looking to buy your very first property or you might even, you know, we've helped people with 15 to 20 properties upscale their property portfolio. Because then property, what you'll realize is people do get stuck. People don't know how to take the next step or their bond affordability runs out and they don't know where to go. That's where the property academy comes in. And it's been set up by South African investors, four South African investors. And we can help you. So make sure when I'm done with this video, make sure you come to heart to myself and heart to my team to see how we can help you. But for now ladies and gents, tell me right now who is serious about property? Who really wants to flip properties? Let me know in that box. Who really wants to learn how to flip properties? Because you have the thing. This is not for everyone. I'm flipping properties unlike a bat to let I can set for everyone. Flipping properties is not for everyone. So this is not for you if you're a lazy investor. If you don't want to get out there and put some hard work in this isn't for you. Or perhaps you're very comfortable. You're wealthy, you've got loads of money. You don't need to flip properties. This is not for you either. And if you are not prepared to take calculated risks, flipping properties is not going to work. But here's the thing. If you watch this, you're like, look Andrew, I'm willing to take some calculated risks. I'm happy to put some time and effort in. And I do want to change in my life. Then flipping properties is definitely for you. So listen carefully. We're going to go through some awesome content now. And like I said to you at the end of this webinar we will be showing a link with you that if you click the link, you can join me for a good hour, hour and a half where I'll go into a lot more depth into flipping properties. The first thing is what market, what price bracket should we be investing in? Should we be investing in all the areas below a million or should we be investing in the higher levels? The four millions or five millions? What level do you think we should be flipping? Let me know. Your 400,000s, your 600,000s or perhaps we should be going to the very affluent areas where you buy mentions for 8 million, 10 million. Let me know. Where do you think we should be flipping properties? Now, here's your checklist. Now this is very important, ladies and gents. I want you to take these and write these down very quickly for me. We've spoken about yes, I'm sure we all agree get the right education. There is a flipping course by the Property Academy. Identify one area and write this down all the area. Identify the risks if we can't sell the property. What can we do with the property? What's your exit strategy? And if you can get direct to private sale. So I'll do the three state agents as well. Don't get me wrong, but it also helps if we get direct to private sellers and you need to learn the different ways of structuring deals. It's not always just the conventional way of buying the property, take transfer, renovate the property and sell. There's different ways to do this. Now, understanding how to run the numbers. This is where a lot of beginners go on is they don't know how to run the numbers. So you've got to learn the different structure, the way to structure deals and then how to actually run the numbers. Now, place a gain and you can see that quite a few areas where people do go wrong is they underestimate the cost of a renovation. They're not quite sure how to renovate a property. Do we get builders in or individual tradesmen? Do you have time to project manager property? But now coming back to the offer to purchase, how do you even secure it? Because good deals don't stick along. I'll still do these daily deals. If I don't be fast enough, I don't get that deal. So how do you get the right OTP and how do you structure the OTP so that you have exit strategies in the OTP right there down? Not only having exit strategies while you're in the flip, but before we even commit to the flip in the offer to purchase, what suspense and clauses can we put in to get out? Can you, are you seeing this ladies and gents that there is more to this than meets the iron? That's why I said earlier, it is a specialized strategy. Now, this is my view. I want to focus on properties below a million, right there down. Let's focus on properties below a million round. Now, who are we going to be selling to in this market? People are downsizing, but there's still loads of fresh of new first-time buyers coming through the market. So if I can find all the stress property, renovate to make it look very good and affordable to a first-time buyer, I'll still be able to sell to a first-time buyer in this market. Why and how do I know that? Because I'm in the market and I'm speaking to first-time buyers on a regular basis. You just got to make sure it's affordable for them. At the same time, in any recession, you probably see property investors coming through. So we can sell to property investors as well. Now, the trick here is not to buy and when it comes to selling a property, you pray and hope that it's going to sell. No, you must start lining up your buyers. Now, it's easier said than done, but imagine you're going to find a property that you're going to flip and you've already got a buyer for it. That's the chitchat because that starts to de-risk the investment. Because now you've got buyers lining up saying, oh geez, Andrew, if you buy that, I'll buy that. I'll buy that from you. Now, there's ways and there's ways and means to do which I'll cover in that free webinar. Here's a prime example. I mean, if you know the Greenstone Edenvale area here in Johannesburg, because I'm from Edenvale, if you've got a place like Greenstone, it's a newish area. You go to the avenues, it's an oldish area. So I want you to write this down. Look for older areas. Because what you'll find is you'll find more distressed properties and properties where there's equity. And write this down as well. What you're looking for is motivation and equity in a deal. So is the seller motivated and is the equity? Because if there's no equity and there's no motivation, you probably can't do the flip. A strategy like installment sale agreements may work. Write that down. Instalment sale agreements may work. Now, if you don't know what I'm talking about, come see me at my stand at the property academy stand after the specific call and I explain what I'm talking about. And here's the thing. If I'm gonna flip a property to an investor, if I can go find a property and I can convert that to a multi-let like a tenanted, I could flip that onto an investor who will pay a prime, who will pay a full market value for the property. Blocks of flats, investors are looking for blocks of flats. Anything, if we send it to investors, anything that makes financial sense will work. Okay, now, this is what I wanna cover with you on that free webinar. There's the conventional way of flipping properties. Nine to 12 months. There's the back to back. I love, this is my favorite strategy. Write that down, back to back. In four to six months, I can be in and out of a deal. Doesn't work in all deals though, you gotta be careful. Assistant sales, you know? You don't need to get up by and jazz. As long as we JV with the right seller, you can be in and out of a deal in two to six months. And installment sale agreements, cha-ching. In fact, we've also got a course around installment sale agreements. This is a strategy that works in a downward trend market. And I'll be in a downward trend market right now, absolutely. You're probably going, what the hell is an installment sale agreement? Just come speak to us at the stand afterwards. Now, in order to get this to work, we've gotta find the deals. Because thinking about it, if it wasn't that easy, in terms of you going out and finding deals, everybody would be making millions of rounds flipping properties. The reason they're not, is because I don't know how and where to find the properties. So this is something that we can help you with. We can show you how and where you can find these deals. Because if you can't find the deals, you can't do the flips. And not every deal works for flipping. There's only specific deals that will really work. But the great thing is, ladies and gents, that by getting the strategy right, by getting it right, you can start to make a lot of money in flipping. And like I said to you at the beginning of the webinar, it could be because you want to pay off bad debt, you could have credit cards or loans, and you want to pay the debts off. It could be that you want to pay your residential property off. Their strategy, if you sat then you got equity and a property. You know, why don't you take the equity out of your residential property, use that to fund the flip and pay the rest of the debts off on your residential home. Look, I can go on and on about that. And what I suggest to the ladies and gents is, because you're probably wondering, you're probably still wondering but how does this all work? How do I actually flip? What I'd say to you is, if you feel flipping is for you and you want to find a bit more about it, just click on the link, ladies and gents. There is a link in the chat box. Just click on the link right now. Join us for free webinar. I will be there for a good hour to an hour and a half and I'm going to go into a bit more detail in terms of what is a back to back? What is assisted sales? How do you actually do it? So please join me for the free webinar. Click it and come see me at my stand at the Property Academy stand. If you have any questions about flipping or installment sale agreements, you're not sure. You want to get involved, perhaps you'd like to take up the flipping course with the Property Academy. That's absolutely fine as well. Just come speak to me at my stand and I'm ready for a few questions. If you have any questions, then feel free to file them at me. Otherwise, come see me at my stand. See you soon.