If you want to do developments you will also need a project manager, architect, quantity surveyor, town planner, occupational health and safety officer, heritage practitioner, land surveyor, energy efficiency practitioner, engineers, traffic planner and environmental practitioner. Do not try to do it alone as this is not an easy road and you need these professionals to guide you through the myriad of different laws and processes.
6
Buy Properties that are
Below Market Value Buy distressed properties or from distressed sellers. In so doing you will be able to negotiate a better price. Be mindful of the location, don’ t buy a property just because its cheap. It may be cheap for a reason such as the area is infested with drug dealers or gangsterism. The best advice is to find the worst house on the best street in the best neighbourhood. I would also suggest that you target properties that already have tenants so that you do not sit with a vacant property but also make sure the property is cash flow positive from Day 1 to avoid having to pay in any expenses that accrue to the property.
7
Use Other People’ s Money( OPM)
Using OPM means you do not necessarily need your own cash. There are several ways in which you can use OPM to purchase property. These are the most popular ways: Bank Loan, Bank Security, Personal Credit, Equity Gearing, Asset Finance, Partnership, Seller Finance, Owner Finance, Venture Capital, Private Finance, Angel Investment, Rent To Buy and Rent To Rent.
8
Your Investment
Portfolio is a Business Consider this property portfolio as a business that requires a purpose, structure, finance, strategy, asset protection and the correct tax structure. There are several ways in which you can structure your portfolio depending on your needs. You can purchase your portfolio in your personal capacity, partnership, private company, public company, co-operative, trust and others. Just be sure to get the correct advice from professionals who know their stuff.
9
Take Personal Responsibility
No-one but YOU are going to make your business a success. You need to take personal responsibility, be persistent to
24 FEBRUARY 2021 SA Real Estate Investor Magazine