Real Estate Investor February 2021 February 2021 #131 | Page 28

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