 You know, these days people buy commercial properties and rent them to businesses, rent them to shops. Is this something that you guys believe is lucrative and maybe someone can look into? 100%. So when it comes to rental is that you need to understand what is your goal. This is what we say to all our clients, right? Once you understand what is your goal, it's easier for you to actually grow and it's easier for you to identify the right properties that will fit in your portfolio. Private property podcast right here on our private property Facebook page. It's 7pm and it is a weekday. You guys know we are already talking property. That is the standard we are talking on the past topics that will keep you glued to your screens. Tonight we are talking about something that I always mention every time we start an episode to say we want you to be able to grow your property portfolio and to increase it. So if you are already a property investor or are looking into going into property investments, stay tuned. This is the time to send this link to anybody you think is going to be able to benefit from the conversation we are having tonight. And you are absolutely going to enjoy it. If you are joining us on the Twitter Spaces, thank you so much. We really, really appreciate it. Thank you. Thank you for always coming through and sharing your evening with us. So as I said, we are talking tips on how to improve your return. And tonight's one is quite interesting because I have two brothers who are going to be talking to us about how they have started this journey. And they are going to give us tips, you know, those tricks and why they decided to go this way and venture into property. So I am with the guys from known wealth. Good evening, guys, and welcome to the show. Good evening to everybody. Hope that you are well. Hope that you are ready for property investing. Because we are going to really simplify it and make it digestible, as some people would say, because I understand with property investing. There's a whole lot of juggling people speaking about economic factors, speaking about the whole lot of things. So now we just trying to make it as simple as possible for everybody to really understand. It's a Friday night and we're all here. So we're going to make it worthwhile. Let's get into it. Definitely. So the know brothers one is only and one is now. So tell us which one is which and before we carry on because I'm sure everybody wants to know. Are you guys twins? Now is the one that likes to smile more. So this is my brother now. And then I am. Thank you so much guys for joining us and let's kick off the conversation. I really like the direction it's going and tell us a bit more about know wealth. Why you guys decided to start it up and the reason behind you guys putting it together. So what happened is that I know we always say the story however it's really funny. So what happened is that I'm both studied until honest level so I finished earlier I went to go work. Then they will came through and then they was like as soon as he graduated he was like no man. Let's actually go into property investing so I didn't hesitate I listened to him. I'll just put it out there's very important to listen to a young brother. They always they won't lead you astray so I listened to him and then we actually started off with regards to a healing company. Then we went in generated as much money as we could. And then what we then did is that after a while we went into property investing so here we are today talking about property. Sure and you know when we're talking property investments and there's different kinds there's different kinds of investments that one can go into dependent on your risk your level of your level of risk appetite rather. And how much money you have in capital that you've saved up and this is like with any other investment so just talk to us talk talk us through the different types of property investment one gets and how one would know which one to go for if they are starting out if they are. They've been in the market for a while and if maybe they just want to pivot their their portfolio. Can you guys hear me. Hello. Seems like we having technical glitches they're getting the known the known brothers from known wealth but in the meantime send us your questions on Facebook or if you have any questions that are regarding property investment and how one can pivot it because this is what we ultimately want to do we want to help you as an as a viewer and as a part of the private property family to be able to grow your property portfolio so keep sending us those questions keep sending the love and we will try and get them back on the line. And it seems like we have them back can you guys hear me now. Can you hear me. Hello. Yes. Can you can you quickly just switch switch. Just a second. Just a second. Sorry. So you guys. Yes. Please switch the Wi-Fi so that we are able to hear you. Cool while they are doing that let me greet everybody who's watching us on the on the Facebook page. Thank you so much for joining us tonight and everybody else who is joining us. Thank you. Thank you. Thank you. Thank you so much. Thanks so much. Our regulars are definitely here. Thank you guys for so much for joining us. Remember to send us those questions so that when we are now tackling when we have the brothers back they can maybe take us through some of those questions and we can we can start going. Are you guys back. Can you hear me now. Yes. Yes. Yes. Perfect. Perfect. No worries. was just my question was that talk us through the different investment strategies not even strategies but investment types that one gets in in property how do they look and based on your risk appetite and what you are able to afford at the time which one would be best for a beginner someone who's been in the field for two or three years and somebody who really wants to pivot their portfolio. Okay so now we always say that with property investing it's not a one size fits all situation that one situation might be different from one person to another be it that they are a beginner or they've been actually investing in property for a long time so something that you really need to consider number one is that what is your situation in terms of the income that you're actually getting I mean we were in a situation whereby we are renting out a property to return on investment or how much we're actually getting the interest based on what we have actually put into this property was actually good however when you're looking at the money that's coming to us we were getting 1500 and now looking at that situation whereby we both left work and now we're focusing on property investing full time 1500 doesn't really make sense for us so the flipping strategy was more ideal for us to actually invest in. So we're talking these different strategies that one can use and I know that we're going to be going into some of those ones a bit later but talk to us about if what is the best strategy to use a lot of people when it comes to property say stuff like it's better for you to really buy in a great in a great location so that you can then improve and you start renovating your property and someone is like no buy in a place where you know that you're going to get occupancy you're just going to be quick you're going to be able to put somebody in the in the in the property and you'll really be making money from day one so what what advice would you guys give somebody to say when you're going into investing solely how best is it for someone to do. I like the conversation that we had before we went live in terms of us as people in terms of having conversations about property investing at the price stand so we have come to realize that there's those type of conversations at the price stand and then there's real conversations about property investing that we should be having whereby we remove the mask of property investing so what am I saying when I'm saying that I'm talking about let's put the cement let's put the bricks let's put the tenant aside and let's really speak about the return on investment so now once we start talking about what return on investment am I getting with such a property now we're getting to the real stuff because at the end of the day the reason why we are investing into property as it says it's property investment it is an investment so I'm not speculating so now I really need to be careful in terms of the type of properties that I'm buying and what returns would I be projecting because I like giving out this example that if you go to two banks right bank a and bank b bank a says they will give you 10 percent return on investment if you save with them annually and then you go to bank b they say they'll give you 20 percent it's a no-brainer right that you will go for bank b which will give you 20 percent now our main question is that why don't we use the same principle when it comes to property investing so instead of me buying the first property that I see on a property platform I must be really interrogating that property that why should I be investing in that property because ultimately it is an investment and I want I want us to now go into some practical steps that you guys have taken you know in in growing your your own property portfolio you know I know we've been talking about these things in terms of industry norms and what what is out there and what how things happen in the industry I want us to zoom it in a bit and bring it home to say what are some of those strategies that you guys have employed or some some of those investment categories that you guys are using currently and we were speaking a little bit offline about flipping talk to us a little bit more about that why you guys choose to use those those kind of of investments and why it fits in to your life currently and what advice you would give to somebody who's looking to do to to to use the same strategy okay so now with flipping a property basically what we're saying is that you're buying a property below market value you're fixing it up and you then you're reselling it and now the one of the strategies that we actually use especially when you're looking at negotiation is that I would never negotiate based on the number of how many rents am I actually looking at so what I mean by that is that if I'm going to be negotiating it's not going to be based on that I'm negotiating 10 rent of how much I'm actually going to be getting from the property we need to speak with percentages because if you if you come to think about it real estate agents don't get paid based on 1000 or 10 000 rents for selling a property they base it based on a percentage so as property investors we need to actually include that within our strategy that if I'm going to be negotiating I need to calculate that what is the value of the property I'll put numbers there so if the property is valued at 1 million I need to negotiate it at 70 percent below market value so I'm planning on actually buying it at 70 percent so if the property is with 1 million I need to actually purchase the property at 700 000 in order for me to actually make a profit so that's one of the strategies that we are using right now to make sure that we are actually going to be getting a profit on a monthly basis stuff like renting properties out or even commercial properties you know so these days people buy commercial properties and rent them to businesses rent them to shops is this something that you guys believe is lucrative and maybe someone can look into 100 percent man so when it comes to rental is that you need to understand what is your goal this is what we say to all our clients right once you understand what is your goal it's easier for you to actually grow and it's easier for you to identify the right properties that will fit in your portfolio so what am I saying in terms of goal if you if your goal is let's say in terms of your cash flow you would want 10 000 in terms of cash flow so now you know that the properties that you will be buying are properties that are going to lead you closer to 10 000 and when I'm saying lead you closer to 10 000 we're speaking about that word cash flow positive so now if it's cash flow positive 2000 what I'm saying is that you can break it down in terms of 10 000 which is our goal divided by the 2000 that's five so I know that if I'm buying five of these I would have reached my goal however now if you are buying sporadical without understanding the cash flow of that property you end up buying properties for instance that will give you a hundred rent cash flow and now when you're looking at your goal which is financial freedom and then now when we're sitting like this in terms of finances let us discuss finances with Tegatsu what is financial freedom for you we don't have that number so it becomes hard to also identify the type of properties that you should be buying that will lead you to that goal so cash flow is king however now if you do not understand the type of properties that will lead you there then you'll be playing a game whereby you're saying that property is a long-term goal and long-term goal will not have an end date you'll constantly be buying until you finish that home loan and I do not want that for people out there we need to buy intentionally and if there's one thing that I'd really like to leave the audience with is that when you are actually purchasing a property be it it's with commercial or be it's with residential never buy a property that's actually going to be grinding cash flow negative never purchase a property that's going to be running cash flow negative because at the end of the day if something does happen with your current income right now the first thing that you're going to need to sell would be the property that you actually bought which you thought was for investment purposes whereas if you do lose your job or you do lose your income it won't be an investment anymore and you need to sell it below market value because you need to get out of the deal as soon as possible however if the properties actually give you some sort of cash flow you know that even if you do lose your job you're still comfortable you spoke a little bit more or you spoke a bit about negotiating when you are buying a property and when does this happen when you're negotiating to buy the property is it that you are buying it through an auction or you go onto a site like private property and then you look for for that property you like and then you negotiate once you guys are now doing offer to purchase when exactly do you start the negotiations this is when you're acquiring the property so negotiations start with regards to running your numbers so what will happen is that you see a property on property 24 and then you see that okay I can actually make sense of it when I'm looking at the the numbers of it for so when I'm saying the numbers I'm talking about how much will I be paying versus the rental income that I can get so where will I get the information about the rental income I can call five agents that do not have nothing to benefit with this particular deal and then they'll be able to actually give me the numbers in terms of okay you might be getting 6.5 from this property and then now I also understand that the bond with regards to this and also my interest rates because I would have spoken with my bond originator she will then let me know that with this property you'll be paying x amount you'll be paying x amount and then now I know that okay now looking at this property where am I actually going to get go in I'm going to go there with my contractor he is going to make sure that he writes down everything that needs to be fixed and an amount that will be associated to that it won't be amount amount that he sucked from his thumb he's literally going to tell me that the roofing is going to cost x amount painting is going to cost x amount everything and then now when I go back to the agent this can actually even take me a day when I go back to the agent I'm going to be like you know what I see that you listed it at x amount I'm serious about this property however for it to make sense to me because I'm buying the business I need to buy it at x amount of course so now when you're looking at the properties that are negotiable right most of the time what you do is that you go on to private property and you'd search for an area then when you do get that area I like private property because you're able to actually arrange it from the lowest to the highest so most of the time the lowest property that will actually be there would be the lowest which should be able to actually negotiate with yeah so most of the time when you're going into a property or when you want to purchase a property a lot of people are ashamed of negotiating because it might seem as if they don't have any money or you're offending that person but at the end of the day they are asking for a price and it's up to you that do you want to give them that price or don't you want to give them that price if they do reject you I mean that's the name of the game anytime anybody rejects my offer I'm still okay because I know that I've done 30 offers the only time it becomes personal is that if I was really looking at this deal and really wanted wanting this deal that's when it became that's when it becomes offensive so I feel like a lot of people should use platforms such as your private property to actually look at the properties that are there make sure that you know how to actually use the platform so that it yields you the best results there just to wrap up right last time I remember our tagline when we're on a private property it was I'm obsessed with property right this time I'll put it out there is that if you don't negotiate you'll probably be negotiated so you best negotiate level I see why no one was saying the master negotiator because man you've got that negotiation on lockdown thank you so much for that James we're having so much love coming from social media people are are legit saying that this this information you guys are giving us tonight is a really premium thank you so much for that and we're almost at the tail end of our conversation so I want to start wrapping it up and say if you if you were to advise anybody who wants to go into property investment no matter at what level that they are what would you guys say what are the key main things that you would be advised from you to them and even to those people who are already in the market you know who have who have been doing this for years remind them some of those nuggets that they need to to to think about and bring to the to the front of their minds as they make these transactions for me it actually it's it's actually painful how some property investors out there go we go out there to invest because they do have the cash or the credit so to them is that the time is right and I'm going in right now without understanding how deep is this pool so what we did from the onset is that we saw that we need to surround ourselves with experts so we have an expert convencer we have an expert bond originator we have an expert contractor when you're looking at all of these experts they are looking at us as individuals so they tailor make their service towards us I'll give you an example why it's very important to surround yourself with experts that care about you and you're not just a number so what happened is that with the other deal that we were actually signing it took about before we actually set on ourselves with the experts it took about one year six months however now with the conveyance of the property lawyer that we have suspect she literally it legit took a one month and she updates you on a weekly basis in terms of how far is the update so I'll stress again that you can't go in property investing alone you can also come through to our events man where we have all our experts and have a party and it's really nice speaking to the different people in terms of how they can add value to your journey of course and then from my side is that you never should sign a deal before you really understand what you're putting yourself into so if say for instance you don't know how much cash flow are you actually going to be getting or you don't know how much you're going to be getting on a monthly basis do not sign that deal you need to know all of the expenses that you are actually going to incur before you sign that offer to purchase so that you know that when you do sign your offer to purchase it's more of an exciting feeling that you know what it's my first day at work I'm going to get paid at the end of the month or not knowing that at the end of the month am I actually going to get paid using the same principle and putting it into property investing that when I'm signing that offer to purchase I know that at the end of the month I'm going to get paid and this property is not going to be telling my mind sure so information and using that information is very very important thank you so much Jen for joining us tonight I can't believe that the conversation is already over but thank you so much for for the wisdom and for for the information that you guys shared I'm sure a lot of people have been helped by the information that you guys shared tonight and we really really appreciate it thank you guys for joining thank you thank you for having us cheers have a good night and just like that we have reached the end of our conversation tonight and I was with the the known brothers from known wealth who spoke to us about how to how to increase that property investments and how to go into it if you're really thinking about it if you have joined us tonight and you have stayed till the end of the conversation I am sure you really enjoyed that thank you so much for joining us again and hope to see you every weekday 7 p.m right here on the private property podcast have a good one