Real Estate Investor Magazine South Africa October 2013 | Page 15

UPFRONT Dolf de Roos, internationa l propert y investment guru, spoke to delegates from China via live streaming, where he is investigating new opportunities. Donald Trump Jnr., star of “The Apprentice” spoke to delegates enroute to announcing a major new development in Washington DC – the redevelopment of an architectural treasure, the Old Post Office building located just two blocks from the White House, into a world-class hotel. The world’s number one real estate coach, JT Foxx, spoke about the more than 500 properties deals worth $40 million that he has concluded in just six years. Local billionaire businessman Jannie Mouton and billionaire property fund tycoon Sisa Ngebulana shared their journeys to success, rising up from humble beginnings. So how do these investors continue to create wealth and success during one of the most trying economic eras the world has ever seen? One clear, consistent message emerged from all the speakers at the event: find your passion and take action! Find your passion If there is one common characteristic among all the successful investors speaking at the Wealth MasterClass event, it is their unmistakeable passion for property investment and wealth creation. There can be no doubt that all these investors relish playing the property investment game, constantly hone their strategies and tactics, and delight in the success they achieve. With the same enthusiasm, they admit to their mistakes and regard these as invaluable lessons that allow them to improve their strategies and tactics deal after deal. It is interesting to note that their passion and enthusiasm are not driven by money. As Ryan Pinnick, Natural Success mentor, explained to delegates: “Life is not about working seven days a week, chasing money while compromising health and relationships and giving up the things you enjoy. Success is doing what you love, what is most important to you and connecting to your genius. Create a business you love and enjoy!” Donald Trump Jnr told delegates that the “Trump mindset” is based on the belief that you have to be passionate about what do, if you want to excel. He said that this “Trump mindset” can be described simply as the willingness to take action, bringing energy and attention to every aspect of the business. www.reimag.co.za He says that to the Trump family, property is not just work, it is a vocation, a hobby, a passion and a way of life. Asked what was the single most important lesson he learnt from his dad Donald Trump Snr, he said: “It’s not just about the money or the paycheck. You have to pursue inspiring goals and live your passion.” It is also evident that these investors are not afraid to take risks, because they follow a system and surround themselves with expert partners, and therefore the risks they take are calculated. Understanding the passion So why are these investors so passionate about property? What is it about property that inspires and excites them to achieve such incredible levels of success? Why are they so keen to share their knowledge with others? It is simply because they know beyond any doubt that property investment is the simplest, most efficient and most powerful wealth creation tool and it is available to anyone who chooses to pursue wealth creation. Property investment is supremely simple. Dr Koos du Toit of P3 Investment Group explains: “The investor acquires a property in a good location with strong and sustainable rental demand. The property is acquired through a mortgage loan, so the investor does not have to use his/her own money to acquire the property. The property is then rented out to a tenant, and provided that the right property in the right area was acquired with the right finance, the tenant’s rental should cover the bond repayments and other property expenses, including the fee for professional tenant and property management. The investor has thus acquired an income-generating asset without investing any of his/her own money, because the property was acquired with the bank’s money, and the loan repayment and other property expenses are covered by the rental paid by the investor. “Provided that investors follow a tried-and-tested system, with built in risk management strategies, such as rental insurance, an investor needs no previous qualifications or experience, and very little time, money or effort to acquire such a passive income-generating asset, which is also producing capital growth.” In addition to its stunning simplicity, property investment is also the most efficient wealth creation tool. This is because the investor, having invested none of his/her own money, enjoys both ongoing capital growth on the property, as well as a growing ongoing passive income, as the rental increases in line with inflation year after year. Property investment is also the most powerful wealth creation tool, producing truly spectacular returns on investment. This is because both the capital growth and the growth in income are compounded. And compounding, as Einstein reminded us, is the eighth wonder of the world. Furthermore, if the investor did not invest a cent of his/her own money, but is receiving both capital growth and a growing income, the returns are, in fact, infinite. And that is exciting, indeed. Endless possibilities Of course, one property is unlikely to turn the average investor into a millionaire overnight. However, given the simplicity of the property investment system, as well as the fact that investors need no previous qualifications or experience, and very little time, money or effort to acquire an investment property, the system can be duplicated again and again. “This allows even ordinary salaryearning investors to build up a small but highly profitable portfolio of buy-to-let properties, creating a guaranteed income stream for retirement and beyond, as well as ongoing capital growth,” notes Dr du Toit. While most novice investors naturally think in terms of entry-level residential properties