 and welcome to the Midway Mark in our first-day property challenge. Oh my goodness, it is week number five, day 25 and we're already halfway through this challenge. For now, enjoy the compilation of some of the key highlights of the first half of our first-day property challenge brought to you by EDPF Property Academy and Private Property. One of my names in Taborling, Max L, I am so excited because I'm about to take you on a journey like no other. If you haven't heard about it, you're hearing about it now. I'm about to be a part of the 50-day Celebrity Challenge where I'll be walking hand in hand with EDPF Property Academy alongside Private Property and they are going to help me to acquire investment property in the next 50 days. Listen, if you want to know how, because I want to know how as well, make sure that you stick around. I mean, look at us already. This is how we kick-starting it. We're at Staffentane Heritage Lodge and we're about to jump. I lie, we're going to zipline today. I'm actually happy we're not jumping. We're going to be ziplining over here just behind us is the cradle of humankind. It's absolutely gorgeous, absolutely amazing, exactly like how this journey is going to be. So stick around. It's going to be absolutely fun. We're going to have started this 50-day Property Challenge. That was an exciting day we had on day one. Now we'd like to remind you of how to use the Private Property app. Let's watch Ben as he explains all the functionality within the Private Property app. Cool. So I'm going to, I'm just going to click open because I've, like I said, I've downloaded the app and then it will pop up straight away. So this is the home screen or the home page of the app. At the top, just below our logo, you'll see that you have your two options for sales and rentals. I'm just changing between the two. In this case, Nigel, I assume that we are going to look for sales. I think Ben, let's do both. So we can show the public that you have the sale option as well as that interoption. 100% sure. So we will start off with sales. These are, you can set up a profile. So at the bottom right of the screen, you'll see a little icon that says profile. And you can set that up and you can sign in with your different details. You can use Facebook to sign in too. The benefit of creating a profile is that when you create this profile and you search for properties, you can set up different alerts. So an example would be, I'll use Cape Town as an example. So if I really want to look at properties in Cape Town, and I want to set up an alert for new properties that are listed in the sales or rentals in the Cape Town CBD, and I can select my price range. I can select obviously the location and how many rooms. And every single time a new property gets added to the listing, to the website, we then send out a notification to you. So if Jared, if you want to buy a property, let's say even up the west coast of Cape Town, you can set up that property alert. And as soon as a new property gets added to the website, you will be one of the first people to be notified that that property is available. Yeah. So that's really, really handy because with property, the early bird catches the worm, right? Yeah. If you can get in before any other potential buyers, you stand a much better chance. Obviously, the offer is very important too. So I'm going to use, who wants to give me an area to search? Anyone? Okay. There we go. So I've just typed in arcade D. Then you have your three options because there are three Arcadias in South Africa. On the top one, you can see that's obviously the one that we're looking at. We want to look at on the right hand side, you'll see that there's 318 properties in that region that are listed on our website. Arcadia is a very specific search, if that makes sense. So you could search like Pretoria East or Pretoria North or whatever, and you could get way more properties listed. But this is quite nice and specific. So I've just clicked, I've just clicked the Arcadia in Pretoria, and now it goes through all 318 properties onto this. If I just scroll down, it'll just keep going until 131 properties because I've got actually filters on. Let me remove these. So there we go. Sorry, search. There we go. 328 properties now. So this is Arcadia, this is the suburb of Pretoria and Central. And now we don't want to go through 328 properties because we have already an understanding of what our criteria is. So we know we want to look for a property of X amount of value because we're not going to be able to afford 150 million grand property. Well, some of us may, but I also don't know if those exist in Arcadia, but we're going to change some of the filters to suit our needs or our criteria. So I'm going to click on filter and in tabulating you, you gave us this. So you're going to have to tell me what your criteria or filters are. So let's look at price range first. So where do you want to start? Starting price. Yes. Let's say 300 or 250. Ending at nothing over half a million. So let's say ending at 400, 500. Sure. So let's say 600. Right. And I'll tell you why because there's always room for negotiation. So I'm going to do that. So 250 to 600 property types. So I'm going to go house and flat townhouse as well, land and farm. I don't think we're going to go for those because I would be surprised, you know, if we have a girl, she's going to build it. Cool bedrooms. So let's just go one plus for now because that's the minimum bathrooms. I'll leave garage. Yeah, we can go one plus. I think we're going to struggle maybe to find this because there might not be any in this criteria, but I might be wrong. Parking leave. All properties. Yep. On show. No, just leave it as all properties because you can get some nice deals if you leave the others in. And then I'm just going to click search at the bottom. All right. So we have 45 properties out of the 283. So what we can do is we can actually add some more filters on. So let's go maybe two bedrooms, right? And let's go maybe one, at least one, one bathroom. And parking. No, let's leave parking. So let's search that. Pet friendly. Let's leave that off for now. Cool. So 29 properties. So we filtered out 299 properties to really get an offer or sorry, to really get a property that is matching your criteria. And it's much easier to search through 29 properties rather than to hunt. Well, it was 328, something like that. So now we can look at the different properties. A lot of them do look like the ones below. Sorry, these look like apartments, apartment, apartment. This is a flat apartment, apartment. So it's quite interesting. There's quite a few apartments here. There's no single houses. I would say probably all of them are apartments. So what we can do is if you've created a profile, you can click on the top right hand corner. You'll see it says plus follow. If you click plus follow, I can't do it now because I don't have my my profile loaded. If I click plus follow, what will happen is it will tell me every single time a new property is added into Arcadia with these five filters and then push your criteria. So it's very, very cool. It's very user friendly. And like I said, you don't need to go through 300 properties to pretty much exactly. And you know why I said 600? So your your budget is 500. But if you look at some of these, there is let's look, let's look 485. There's a 500 there, 520. Right. So you wouldn't have found that apartment if you typed in only 500. So always just go a little bit more above because if I check to this guy from Rawson, I'm going to click this property. I'm going to use this as an example. Maybe I can negotiate that rate down to 500,000. And you wouldn't have seen that if you did not add in a little bit, a little bit more of a buffer, if that makes sense. Thank you again, Ben, for that enlightening session. Next up, we'd like to show you again why people invest and invest specifically in property. As you all know by now, the EDPF is here to change the landscape of property ownership patents in South Africa. So we're talking mostly about property, but today we just want to quickly touch on why people invest. So there are quickly go there. There are two reasons, number one, income and number two, equity. Or in other words, capital or capital growth or equity growth. So where people invest for income? Basically, what they're doing is they're putting money into an investment, whether that be property on the stock exchange, in a business, or any other investment for that matter. If you want to invest in Bitcoin, whatever the case may be. The first reason why people invest is income. Now, for those people who want to generate a consistent income from the investments, they will look at what the return on the investment is and what the best investment will bring them from a return perspective. And we'll talk a little bit about those metrics in the next segment. But to just be sure that when you invest, these are the two reasons why people generally invest for income and for equity. What do we mean by equity? Equity is the difference between the value of your investment and the debt that you have on that investment. So let us, because we talk about property at the EGPF Academy, let's talk about property. On the one hand, you've got your property. Let's call it, let's say it's a million grand property. Then you've got your bond, which is your liability or your debt. And let's say your bond is 800,000 grand. The difference then between your asset, which is the value of your property, a million grand and the other side, which is your liability or debt, your bond, which is 800,000 grand. The difference is 200,000. That is your equity. And basically what people, why people invest in property is that the equity over a period of time, as you repay your bond, that equity grows. So you would have paid maybe 200,000 grand deposit on the property, thus creating the equity upfront. And then over time, as you pay down your bond, your bond starts to reduce in a couple of years, maybe 600,000. And the difference then is 400,000. But you must also remember that with property, you also have generic increase in value of the property itself. Not just the difference between your bond and what you bought the property for, but also the bond and the difference between the bond and the value of your property as it increases over time. So let's say, for example, after five years, you've paid 100,000 grand into your bond from a capital perspective over and above your interest that you paid, just the capital that you've repaid. Let's say you've paid 100,000 grand, but your property has increased in value by 100,000 grand. So now your property is worth 1.1 million, your bond is 700,000. So your capital growth or your equity has grown from 400,000, from 200,000, sorry, originally, to 400,000. So you see that not only is your equity growing by you paying down your bond and therefore the difference in the capital that you're out to the bank, that creates an increase in your equity, but it also increases by the value accretion of your property itself. As the market value of your property in that area increases, your equity also increases. So property, from my perspective anyway, being the ultimate investment is the one that is best suited not just for income, but also for equity growth. Okay, then let's talk about equity and equity growth and why people invest in equity growth and how you can get equity growth. There are four general ways that you can get good equity growth in your property portfolio. Now, as I said earlier, equity is the value of your property minus the debt, the asset value minus the debt, which will then give you that little bit, which is your equity. Okay, what either you put in or what you've been able to negotiate. So there are four ways that you can receive equity and grow equity. First of all, buying at the discount or under market value. All right. So let's say the property is worth 1.5, you've managed to get the property at the million and your bond is only 800,000. So therefore, because the property is 1.5, your bond is 800,000, your equity is 700,000, it's the 1.5 minus 800,000. Okay, if however, you've bought at market value, your property is a million, your bond is 800,000, your equity is only 200,000. So the first way to grow equity or to build equity is to negotiate better deals. Get your property at the discount and definitely under market value so that you can grow your equity much higher than just the difference between the value or the purchase price and the bond. The second way is to add value, what they call forced appreciation. How you add value to a property? We spoke earlier or yesterday, in fact, I think it was, when we spoke about buying the worst property on the best three. If you buy the worst property, you can then do a spot in a polish, you can do some painting, you can do some tiling, you can put in some cupboard, fix the kitchen, fix the bathroom and through that, increase the value of the property by doing renovations to the property. What they call forced appreciation. So you can take a property of a million, spend 100,000 to 200,000 on it, but then increase the value to one and a half million or even higher. And therefore, let's say you spent 1.2 million to buy a 200,000 on the renovations, but you increase the value to 1.5, instead of having zero equity, you now have 300,000 range of equity because the value is 1.5, but you only spent 1.2. So that's forced appreciation and adding value to your equity. The next one is to pay down your bond quicker than expected. Now, there are lots of calculations you can use and one of the calculators that we have on our tablet is a bond reduction calculation. And basically what that calculator does, it sends to you, if you pay X amount onto your bond extra, you can increase the equity portion of your property value much quicker because you've now reduced your bond in a quicker way. So normally, a bond will be 20 years. And let's say you've got a property of a million range and you pay 10,000 in a month. If you pay 1,000 in a month extra, you can reduce your bond easily, I think to about from 20 years down to about 16 years or 15.33 years was the calculation I did that today. So therefore, you can now reduce your equity or increase your equity by reducing your bond quicker. And then in 15 years, as opposed to 20 years, have the full value of the property be your equity because there's no more bond. So the value of the property then is increased from 1 million to 1.8 million, but your bond is reduced from 800,000 down to zero in 15 years and not 20 years. So now in your 15, you've got equity of 1.8 million because your bond is zero, as opposed to having still a bond left at that time if you haven't reduced your bond by more payments. So that's the third way of increasing your equity by paying off your bond quicker. Then there's passive price appreciation. That's the last way. Basically what you can do is do nothing. Do nothing. Pay off your bond in the 20 years and basically what will then happen, as you pay your bond, the capital will decrease in what you owe the bank. Your bond will decrease, but your asset will increase and therefore the equity naturally increases because your property is increasing in value, your bond is reducing. So that variance, that difference is increasing your equity in a passive way where you've actually done nothing but for your bond and therefore your equity is increasing. Finally, we caught up with Jared earlier today to learn about what he's been doing and the journey he's taken towards his first property investment. I understand that you have now made a final decision. The last time you spoke, you had narrowed it down to two properties and there was just one particular property basically that you had saved. This is probably the one that you're going to go for. What is the difference now? Have you made the offer? Have you raised the money? What's going on? Yes, so I'm very excited to say that I've made the offer and between my wife and I, we had the funds. Yay! Through saving, I completely mentioned saying that on the program because 50 days sounded a little bit unattainable. But between my wife, we managed to source the funds. We were out buying a small fraction and so we leaned into what we learned around other people's money and so we have a few friends that were able to just make up that small fraction and so through rental we'll be able to keep them their money back and have the properties so we find and it's happened so very excited. Yes, that is absolutely amazing. We normally ring the bell when we do something exciting at the EDPF Academy. Unfortunately, I didn't realize that you were already purchased your first property so I didn't ring the bell with me. But the next time I will definitely ring the bell so I can ring it. I'm so very, very proud of you Janet. I'm so very happy for you that you've put in that first offer. You've got the money available and now literally basically, but all you're waiting for now is transfer, right? Correct. We're just waiting for everything. It's so scary. It's so new. It's exciting but I'm glad that I've started or we've started my wife and I and so we're looking forward to seeing how this journey unfolds. You know, I think for anybody watching, I just want to reiterate that it's obviously not easy. There's a lot that you have to take into consideration but definitely possible and I just want to say again, I'm just like everybody else out there who has to look at the funds and see what's possible and so I'm just happy that I got to this point. Am I actually doing this? Is this real? To the point where the offer was accepted and now we're just waiting for everything else to happen and it's quite cool. It's really cool. Wow. And I think if my memory serves me our discussion on this particular property, in fact from day one you're going to be cash flow positive. You're actually going to have income from day one. Correct. It is a holiday rental so it's already generating funds for the previous owner. You know, there's a previous owner now they're going to be doing it. So that is awesome. It's really forward-booked for a lot of holidays and so I'm happy to either it's an actual cash flow positive business. Wow. So basically everything that we've told you you've implemented, it's done. You're waiting for transfer and the minute you have transfer you're going to start getting income and we only offer through the challenge. So yeah, that's great. Yes, yes, yes, my thinking, Jared. Now that you've got your first property and I know it's a scary thing and it's not actually part of the 50 day challenge because ultimately we only wanted you to buy one property but yeah, I challenge to you now. Let's go for that second one. Why not? I've already been looking around. I want something sort of in the city centre because as a holiday kind of Airbnb because I do a lot of gigs in the city and so it's always a slip to have to drive in and out of traffic. So if I have something that's there that's available when I have gigs or I can rent out because travel sort of open now and so many people are coming to Cape Town and want to be in the city. It could be another good investment. So hey, I'm down. Let's see what we can do. The bug is bitter. Yeah, that's the thing with property, when the bug bites and bites and you just cannot, it won't let go and you'll just keep going and I'm very, I'm very happy for you. I'm very proud that we were part of your journey or are still part of your journey and that hopefully in the second half of the 50 day challenge, who knows? Maybe we can even do a second property for you. Let's see what John spies. I mean, I might have to have a chat with you and your team and your networks just to understand where to from here. I mean, I do know I've looked but I think I just need some validation around a few things. So you guys. Awesome. Okay, I think that's enough for today. I mean, that is just absolutely phenomenal. And in fact, we're going to use this in our app up for week number week number five. I thank you, Jared. Thank you for the listeners out there. Thank you for the property for giving us this phenomenal platform so that we can teach people how to become property investors. As you're talking to me, I'm getting updates from agents who are texting me on WhatsApp. So the search continues, I guess. That's amazing. Jared, I think for the rest of the 50 day challenge, all I really want from you then is to send us videos, send us pictures of how we're going out there looking for your second property. So that will be our updates as how you're doing your search. And the one thing that I want to do maybe next week is that we're going to bring Gareth on board and we're going to ask him to show you the transfer process and how to get to that point where you eventually take the transfer of your property. How does that sound? Brilliant. I love that. I mean, all the information that I can gather. Fantastic. Awesome. So we'll do that next week. But for now, well done. Congratulations. And to the rest of you guys out there. Thank you guys for watching us. Join us again next week as we continue this journey of the 50 day property challenge with EDP and Property Academy and Private Property. Thank you, everybody. And thank you, Jared.