Real Estate Investor Magazine South Africa October 2015 | Page 21

UPFRONT
wasn’t long before I dropped out of the MBA program.
That 3-day real estate course was much more of
a real-life experience. During the real estate down
turn, which began in 2007, I acquired nearly 40% of
my current portfolio of properties. Needless to say, I
love real estate crashes because I love buying great real
estate at bargain prices.
But I do not invest in real estate just to own real
estate. The primary reason I invest in real estate is to
leverage debt and minimize taxes. In many ways this
article is about debt and taxes…more than real estate.
A Word of Caution
I have the good fortune of teaching all over the world
and no matter where I go I always hear people say “You
can’t do that here.” I even hear, “You can’t do that here”
from people in the United States—where I am doing
what I am about to tell you about. In other words, as
you read further, please keep an open mind and don’t
tell me “You can’t do that here.” I just left South Africa
and I know you can do what I do in South Africa.
Pictured below is the CASHFLOW Quadrant, from
my book by the same name.
In this graphic below,
E stands for employee
S stands for self-employed
B stands for big business (with 500 employees or more)
I stands for active investor

We have added the average percent that individuals
or companies in each quadrant pay in taxes. For
example, for those in S quadrant—the self employed,
small business owners, and specialists s Ս