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