 Hello everybody and welcome back to the 50 day property challenge. It's been an awesome ride so far. We are now already almost at the end of week eight, which means we only have two more weeks to go. Today we're catching up with Jared. Talk about hey Jared, we're going to talk about his progress again. He's been really busy not only on the challenge itself but also extremely busy in his life being called up to a number of gigs, which is great at this time after such a long period when nothing was happening. All of a sudden you're busy and I'm very glad for you Jared that you are so busy now. But yeah that's kept you sort of almost it's been difficult for you to actually partake in this 50 day challenge because you've been so busy and you've been really gracious and I thank you for that in terms of the time that you've given us despite your extremely busy schedule. No it's been a challenge not just the 50 day challenge I think for everybody you know now that things have opened up a bit more there are a lot more business opportunities which is great which means we accumulate more funds to be able to invest in property. So it's been a busy time but I've been sure to allocate a few hours at least to focusing on the portfolio and what I want to do next. Fantastic look at the end of the day when we invest in property it's not about necessarily and we've had conversations about some of our students who have been watching the videos and they are deciding to do this full time as property investors. Most of us don't have the luxury unfortunately to become full time property investors because we need to pay the bills, we need to buy food, we need to pay our own bonds or rent if we are renting somewhere and some of us have kids and so on so we don't have the luxury unfortunately of becoming full time property investors yet. So we have busy lives and we want to do all of that but at the end of the day building a property portfolio is one legacy it's about building a pension fund for yourself that you're in control of, that you manage and that has the capacity to not only bring you an income monthly but also give you the growth potential of property and that's really the reason why we are doing all of this and why we are doing the 50 day challenge in fact to help the public see that it is possible. Yes, I'm looking forward to further unpeeling this whole journey and like I said for me it's been an interesting process because as we discussed the previous time that I've been looking at a specific property and I've shared some deeper interest and I do have some news for you so I'm going to share it. I like news, I like news, okay so let's get straight into a thing so I assume that's news on your impending transfer, what's going on? So the property is on prep and the air is so through various discussions with you knowing that it takes about five days I'm looking forward to just seeing everything solidify and be done and I'm quite excited, I must admit it's still scary but it's a good start for me and so I'm looking forward to seeing how the rest of this portfolio sort of pieces to give it eventually. That is, wow that's phenomenal so the last time about two weeks ago I think it was we spoke about the fact that you had purchased and that you had the money because you got some investors in and you then put in the offer and they were subject to nothing so at the end of the day they could immediately start the transfer process and that helps a great deal because there's only one process to follow it's the actual transfer and also the bond process so it's been about two weeks I think if I'm not mistaken just over two weeks and now it's on prep which means that was in the next five working days or so if nothing goes wrong because sometimes things go wrong then chances are you most likely by next week sometime will have ownership of your first property. I am so so very happy for you and very proud that we as the EDPF going to be part of that. No listen I'm very excited of course it's due to the knowledge that we received and that I received and I'm just the encouragement I think it's great because obviously before I haven't really surrounded myself with people or in these type of conversations and so the EDPF community does help you sort of become a lot more affair with knowledge on on property development but also just to surround yourself with people you can converse with on this level I think it's always important to surround yourself with the people that you want to be like that you aspire to or people that are sort of on the same path you know because they put your heads together and do great things so I'm very excited fantastic all right so that oh wow man that's amazing okay so the second thing that we are going to chat about today you've also said that you've got another property I think you said in the canoe or something that you're looking at yeah just like something to to I've just been looking outside of my usual search patterns just to see where it is but of course when looking at spaces like that it's about understanding why you're wanting to purchase there and having sort of a really well plotted out journey and plan for the property so I'm still looking around you know I've always just aspired to have a big piece of land somewhere up up country just because I think you can do a lot with it and it's always good to have land as well outside of a fixed property or house over flat yeah yeah absolutely if you're lips in the country you never know when they might need that land and somebody could buy you outdoor yeah I don't know so I'm still on the search haven't found that exact property there was one that I was interested in I'm still waiting for more information on that it's I like that one because it's an historical kind of monument to the to the area and has a rich history from the Anglo Boer wall and it would be cool to own something that has that kind of history because what that means for tourism and people staying there it's it's it's a nice value as you know to have a property with a story that people might be interested in but I'm still looking I'm still looking listen I'm I'm fresh in this game so I don't want to just dive in and go crazy but I am searching for the awesome nice new developments one bedroom apartment two bedroom apartments in the pine lands and so I'll be looking at that because it's obviously a lot cheaper and a lot more opportunities that come with that because it's a it's a community kind of that they're building not just the complex it will be new shops and new gyms kind of thing and so for a younger person who wants to rent somewhere I think that's a lot more appealing and so I'm split between the kind of market that I want to attract with the property in terms of what I want to do with it so a lot more scribbling on my notebook to see where I'm headed but nevertheless still on the search is still on so I tell you what I've actually got three opportunities that may interest you it's not exactly in line with your thinking on the Airbnb side but eventually on a fixed rental kind of where you have a fixed tenant for a yo2 and roll that over over a period of time so there's one opportunity that was brought to us in the kennelwith area for just on a million rent oh wow two bedroom unit really well priced very nice fixtures and fittings and so on maybe need a little bit of work but it probably won't cost more than like 30 or 50 000 rand to do maybe a new bathroom tiling and stuff like that but it does look like a pretty decent option I will I will send you the video of it one of the agents one of the agents that work with us england focus have have that in fact the the funny thing about it is that the the agent is actually a student in the edbf program so that's how she brings us opportunities so I'm going to send you that one and then I've also got a thing called the one W Y N N E they've got opportunities where we as edbf and our students have discounted they've given us a discount on the sale of the property so anybody who's the edbf student will be able to get this particular discount on the on their property and then on top of that it's also in an urban development zone now urban development zones what those are is that government has given these tax incentives when you buy in an urban development zone or you build in an urban development zone a new complex or you do a big revamp then you can write off 55 percent of your cost of purchasing that property over a period I think of I think between 10 and 20 years I'm not sure what the exact period is but you can write off 55 percent of that's you cost now effectively what what that means is that the receiver is funding you 55 percent of the cost of your of your of your apartment so instead of paying 595 which is the one two bedroom sorry not a two bedroom it's a bachelor's unit or sorry a one bedroom unit that most of our students are looking at instead of paying 595 you're getting a nice discount there I think it ends up being like 550 and then on top of that were the 55 percent incentive over a period of 20 years you can write off 55 percent against your income tax which means that you don't pay any tax for a good couple of years and I see a doubling Matt Ellis joining us so let me just admit her into the room quickly but yeah that's that's an opportunity it's the one in in sort of the paro area down there and I mean that's a growing area down that corridor the footreker corridor is a massively growing area and there's a huge demand there so so there's an opportunity I'm friends with the developer there please do yeah I'll send you that one and then there is there was another one that came across my desk which so it's a one from the claim or the can always one the one in paro and then we also have an opportunity that the development bank of South Africa is brought to us where we want to put a couple of students into a consortium one they call a special purpose vehicle and I'll send you some information on that you may be interested in that one as well because that is for social housing and student accommodation where where they are saying that possibly they can fund the entire thing if the students bring their sweet equity they time the energy and the expertise to the project then they will take that as their equity so they call it sweet equity into the project as opposed to putting cash in so that's another way that I maybe didn't say about we don't remember that time we spoke about how do you raise capital one of the ways is to put in sweet equity and this is an this is an opportunity that the development bank is brought to us so so there's some really nice opportunities that because you are on the program and you still have three more years to come we can look at that option as well but I'll send you all of those and hopefully before the end of the 50 days you'll make a decision on which one to go for and then we'll take the process further okay please yeah that'll be great thank you so much fantastic man hey then Matt how are you doing hi how are you I'm saying just trying to reconnect my camera no problem I'm just going to say goodbye to Jared because he unfortunately only had half an hour for us so Jared thank you very much for your time we will see you again next week hopefully that good news of the transfer and then the following week we will wrap up completely for the 50 days but we'll still walk a nice long journey with you that hopefully before you are done in this program by 2024 that you will have a portfolio hopefully of about 5 million or even more that's what I'm hoping for you before you leave this program okay thank you so much guys all right awesome Jared thank you very very much your time we'll see you all right okay go hi there how are you I'm well thanks how are you Nigel it's been a while yeah no that's been a couple of days fortunately Jared has been uh he's given us some time over the last couple of days and if you haven't seen a couple of weeks ago he I'm not sure if you were in that session but he actually has bought his first property he got some funds available through friends and family and they could buy the property cash and they he just told me now that he's actually the properties come up on prep which if you watched you know that video that we did with if the public has watched that video that we did with mayor that's the last stage of transfer and normally it takes about 5 days from the date it comes up on prick before the transfer actually goes through so we're hoping that next week um he will be able to take transfer that will be phenomenal but anyway batter I believe you've had some some problems with your arm so that's why we we couldn't check to hide it yeah no need to hide things yeah we are with a family we all want to know what's going on in your life yeah but i'm i'm i'm slowly in recovery i only had the procedure done last week friday so okay taking it i only started driving two days ago um so i'm just getting back on my feet with things but i luckily it's my left and i'm right hand and so i can still do some stuff all right okay so i'm not going to keep you too long for this session i just want to quickly catch up with you and see you know i know that the last couple of days have been awful because of your arm but other than that you know prior to that you were busy looking at about eight different units and i really just want to catch up with you for the session on that and then once we've done that we can then talk about some other stuff at the later stage but for now where you at with those eight units have you narrowed them down have you made a decision what's going on i narrowed them down to four and unfortunately i lost one already i think it was a cash buy or something like that so because the other the the eight i had gone to v in the in the four that i had i had viewed the three but one of them i've already lost to another i don't know maybe the offer was done a while ago or something or it was a cash buy so of my new top three i've only viewed two but there's just one more that i'm left to view um because the other one that i had gone to yeah wasn't really up to scratch in terms of what i thought so that's why it's always good to go view a place because the pictures i think were done maybe when the place was fairly new it looks a bit run down now it's had a couple of tenants i'm sure over the years so i don't think the the agent refreshed the images because it looked quite different so i wasn't happy with that so i completely scratched it out so now i have this top three that i'm left with and i think it's just a matter of especially having had the session last time with apso i think now i'm just ready to yeah make my offer so i've just been gathering all the documents that i'm going to need obviously i got a bit slow down but there's a few stuff i need to send through so i just needed to gather that on my side especially some financial statements because i will be proceeding with this property under my company as opposed to privately because the other two are already on my name yeah so just to refresh the memory of the public so the discussion with adi at apso bank was that because you'd already purchased two properties they'd be able to come in and fund the third property on the basis of the very unique product that they have called the future rental income product so if you didn't have enough cash flow if you didn't have enough rental from your other properties you'd be able to then utilize their product called the future rental income product in order to capitalize and purchase the third property so it's almost a shoe in that you'd be able to get the funding from apso bank on this third property that you want to buy hopefully i get a good rate you're an edpf candidate one of one of the things that the beauty of being an edpf candidate is the fact that we can leverage the bulk buying power to get for example better insurance rates better interest rates better rates from service providers like architects quantity surveyors and so on free access to lightstone and tpn and all those kinds of things so there is definitely an advantage to be part of the edpf program because if you weren't number one you wouldn't even have known about the apso product so the the absolutely is that advantage okay so i think in tappeling let's talk about those three projects then and let's see and go through them and see whether which one of them would be feasible to do and maybe i can help you make a decision you know somebody reminded me of a saying last week we buy property not with our hearts we buy it with a calculator oh it was my ear that said it a couple of days ago my ear said it in a session yeah we and that's the thing as an investor you don't buy property with your heart you when you look at a property all this looks beautiful whatever in fact actually i prefer to buy ugly properties properties that nobody else will want to buy because that gives you the opportunity to negotiate the better price fix it up to this to the standard that you want and then be able to either sell it at the at the better price or rent it out at the higher price so so i'm always out looking for the bad properties not the good ones but as mayer said the as an investor you buy was a calculator not your heart as a person looking for a place to live you buy was your heart not the calculator so depending on what your your thought process is for the property if you're an investor which you are you buying was a calculator so let's pull out our calculator and let's work on those three units so let's look at unit number one what's the purchase price for that unit and which area is the that unit is it's going for 420 okay it's a two bedroom okay it also has a very spacious lounge area it has a bathroom bathroom shower separate toilet which i like it's a one and a half so meaning there's a toilet in the bathroom and a toilet separate okay and it's about 78 square meters that's a good size yeah it's and then so currently in the area for two bedroom and arcade are you looking at an estimated rental of about a thousand right that's just like you can see it the private property so website idea and looking for a two bedroom sale excellent rental so i've now gone to the private property website i've clicked on the link and i'm now filtering price from say 5000 to say 15 000 you remember bent or that's always to go above what we think because we don't want to we don't want to miss opportunity maybe after you know after our cut off and then we don't want to go house we only want to go flats in apartments no land no farms no townhouses no clusters and we want to go two bedrooms plus how many bathrooms did you say one and a half okay so let's call it two then garages garages let me remember i'd had one covered parking and then okay that's fine oh so actually know this garages any but one covered parking okay and yeah okay so that's enough in terms of the filter so let's apply the filters so there are six properties there's a three bedroom for eight thousand two bedroom for eight seven two bedroom for eight nine fifty two nine thousand a two bedroom for seven two a two bedroom for eight eight so roughly in the eight to nine thousand range is where you can where you can rent your property so let okay let's put a stop to that so basically you you're saying that the property is how much four four hundred four twenty four twenty yeah okay asking price so let's say you can secure the thing for four hundred thousand and uh so the legal cost let's say there's another uh 30 000 that you have to pay there so that ends up costing you four thirty all right now let's assume you don't have any deposit let's assume it's a hundred percent bond and you only will then pay the legal fees so the bond's going to be four hundred thousand and on a bond of four hundred thousand and again let's quickly go to the i should have just stayed there let's go to the private property app again and let's see about uh bond so bond let's click on bond count you later see you can do everything on the private property app which is fantastic um actually let's just google sorry bond count you later private property okay here we go bond rebame calculator so it's four hundred one two three deposit zero and let's say let's say they give you prime plus one so make it eight point seven five over 20 years calculate so your bond repayment is going to be three thousand four hundred and seventy one grand um did you did you ask how much the levies are they um the levies they are going for to actually have it i let me just open my journal because i have all fantastic um the levies for this one are one point six one six so that's uh four six that's five thousand grand uh total cost and let's say the the right show about five hundred then that's going to be a lot less than that but let's just like so that means yeah sorry the two fifty three hundred already on the another three okay let's call it three hundred then okay so your total cost um three and half plus one six that's five plus three hundred that's five thousand three hundred and is your total cash output on a monthly basis if your rental is even at the lowest of seven thousand two hundred that we saw you're already cash low positive i want in on that deal let's do that deal together let's get that deal done together that's a nice deal that's i mean even if it's a in terrible condition you can split in a polish put some new tiles in spend another thirty or forty thousand grand on it as well this unit is fully tiled um i think it was recently painted as well so there's quite minimal work there the only thing that i saw that i might need to do is potentially get a new stove for the unit okay and that's normally about four and half five thousand and so that's not a huge cost uh towards the thing so i would say this is definitely i mean you're really there you'll be cash low positive by about that's what we say five three so eight thousand minus five three you'll easily be able to make two thousand seven hundred and profit on that deal every single month in fact that's cash flow not profit your profits even higher because your bond has a capital portion to it so definitely that's a deal to do the second deal what's which area is that money um also the same area also okay idea okay also too better no this one is a two and a half so okay um pretty much the same this one is priced for four four twenty five actually okay okay so you could even do the same deal on this one and make a thousand and extra income deals the properties are found up like pretty much almost the same spec you know they're not too far yeah all right and are those properties already lit or are they do you still have to find the tenant um two my top two are already lit and it's tenants that have stayed there for quite some time so they're also happy to continue staying there but obviously i'd create a new lease agreement for them okay all right i tell you what the doubling met out yes let's do both deals why they're not why not why not let's do both deals let's go in let's go make an offer on both deals and uh we'll get the funding from epsa i'm being serious i'm not even joking let's do okay so i tell you what i'm actually going to stop this conversation now and we you're going to use the rest of the time that we had allocated to make those two phone calls and say to the agents that we are ready to make those offers and then let's get the offers in before the end of this week follow our journey 50 day property challenge was private property and enterprise development property fund and the edbf property academy watch all the videos between myself jared and met out over the last eight weeks that we've been at this now and for the next two weeks to come as we close off the 50 day challenge but don't just watch implement what we are teaching you and you too can become a property investor so thank you very much met out thank you to the public thank you to private property we'll see you again very soon