Property investment portfolio with R1000 - How I started in South Africa - YouTube

Boom how's it going? A lot of people actually  think that for you to start off in property you  

need to have money. Well it's not really true,  because I actually started off in property with  

no money at all and today I just wanna ask  to zoom in into a deal actually where I only,  

or should I say I have only put in a thousand  Rand of my own money. So actually in all the  

deals that I've done ever in my business I have  only done one deal where I've put in my own money  

in the properties that I now co-own and  manage. I now have more than 200 tenants that  

we have across four cities and more than 350  students that we have and all of that has  

actually just come from me investing with  only R1 000. So how did it all start? Well  

it all started on deal number one, my first deal  that I ever did and bearing in mind that I bought  

properties with my wife but none of  those properties were cash flowing  

and we were utilizing obviously the bank  to finance that, but I want to speak to  

deal number one when we actually was starting off  and we now know we have gone into the education  

of property investing and we now know how to  invest. That's the most important thing. Now deal  

number one was a two-bed one bath. For some of you  who know Johannesburg I bought this property in an  

area called Kempton Park and in Kempton Park.  There are quite a few high-rise buildings and  

I bought this two-bed one bath. I put in an offer  for R160 000, yes two bed one bath for R160 000.  

How did I do that? I obviously negotiated,  I saw the opportunity, I saw the problem and  

I negotiated by solving the problem and in some  of my videos I talked about how can you actually  

solve problems so that you can negotiate to get  the right amount that you want to buy a property.  

However on this property two bed one bath, at  that time I was down and out, I had no money in my  

name, I was in debt round about five million Rand  or more and but I'd learned the art of going out  

to look for property opportunities, so I continued  searching for properties. I continued the weekend  

in weekend out, I continued during my  lunch time. I was employed at the time  

and out of that I was then able to actually put  in an offer. It was on the market for around about  

R380 000 I think it was and i put in an offer of  R160 000. My closing cost came to around R50 000  

so we are in in now on that property for R210  000. How did I get to R210 000 - R160k plus R50  

000 all right, so R250 000. It took me a  weekend to actually renovate that property  

and in three days time we're done, we went  in on a Friday, Saturday, Sunday. We're done.  

Round about a week or so later. Within the same  property we already got a tenant and we got that  

tenant and they started paying us rent on five  thousand Rand. Rates and taxes on that property  

together with levies were sitting on around about  a thousand rand and you do the maths. But now  

I just want us to go back, so if I bought  this property for R160 000 and I put in an  

additional R50 000 where did I get the money, or  how did I pay? How did my R1000 come into play,  

because I didn't have any money at that  particular time. I remember I was speaking to  

the estate agent and the estate agent said to me,  yes you want to put in R160 000 as an offer here,  

if it is accepted how much deposit are you going  to put in? At that time I didn't have any money,  

I remember I was a little bit stuck and I called  my coach and I said coach I think I've got a  

hot deal here. We can potentially sell  this deal for around about R400k to R450k  

but I can close it for R160k but these guys are  looking for a deposit, what is your thoughts.  

And he said to me, how much money do you have and  I said I don't have any money. He says okay fine  

how much money are you going to have in the next  30 days and I said, I think I can have a thousand  

rand and he said to me, put in a thousand rand. On  my offer to purchase I did put in a thousand rand  

subject to the owner acceptance and that thousand  rand is going to be available in the next 30 days.  

Sneaky isn't but that was the reality of where  I was, so I did put in an offer and boom,  

it got accepted right when he got accepted then  what happened, I literally had 30 days to come up  

with a R159 000. Again I went back to my coach  and this is where the power of association really  

kicks in, because my coach has been coaching many  many students in his network he's got a bigger  

network than I've got and things like that and I  presented the deal to him and I said to him, dude  

this is what I've got I think this is a very good  deal but I'm only going to have a thousand rand  

and it's only going to be available, I'm afraid  that I might lose the deal. It is a good deal  

so my coach went out and he said to me leave it to  me and a couple of days went by and a week went by  

and two weeks went by and I'm starting to freak  out and at this time I am looking for an investor  

and I had gone to school and I learned, I knew  what an investor was all about but I just never  

worked with any investor before. So I kind of like  was just asking everyone and everyone that I knew.  

But you know with what I know now I was asking  in the wrong manner. Eventually I think it was  

on the third week my coach came by and he said  to me go and speak to this guy called John and  

I went to John and we had a meeting with John and  John said look I want to go and see the property.  

We went and we saw the property and John was like  let's meet again and thereafter I'm like thinking,  

John time is ticking you want us to meet  again this deal needs to close! But obviously  

you know as a newbie you're worried, as a newbie  you're like wanting to close the stuff and you're  

thinking that your hot deal might just go away. In  this time now I'm really panicking and look this  

guy was a seasoned investor, he came back to me  after about two to three days and says let's meet  

again. I'm like brah why don't we just close the  deal and this time around we did meet and out of  

there he says like I like you and I think you know  this is a good deal, let's go into it as a pilot  

right and I'm going to put in the entire money can  we go in 50/50 on this deal and I was like whoa  

are you going to pay R159 000?! obviously I was  saying that in my mind and he had said he's going  

to pay all of it and I'm thinking what about the  renovations of the closing cost of fifty thousand  

hero said he's going to put in everything so i'm  like okay i like this eventually we closed the  

deal he transferred the money to the attorneys and  boom the deal was closed. However let's look on  

the on the flip side of why was he bringing in the  money. Number one he didn't have what I had, I had  

the deal he didn't have the deal he had the money.  Number two this guy was an investor he had so many  

things going on he didn't have the time that I had  and so from a time perspective he said to me look  

I'm going to give him the money we're going to do  this in a new company and within this new company  

you need to come in and do all the work and I  was like what is all the work? And he says well  

the renovation you need to make sure that it's  done when it's time to tenant you need to make  

sure that this property is tenanted. I'm like  yeah I can do that. So guess what the first pilot  

the first project went off exactly like that. 30  days came and I had to put in my R1 000 and his  

money needed to be cleared because it was coming  through from another investment things like that.  

My R1 000, boom I had to pay my 1 000 rand. And  that is my only R1 000 that I've ever put into a  

deal. So let's go on and conclude onto the deal  what then happened. Well the deal we were able  

to renovate it the money came through we paid the  attorneys and then it registered into our name and  

out of that we then was able to actually put in  a tenant about about a couple of weeks after the  

renovations was done and we were able to actually  have a tenant. And that tenant was paying us five  

thousand rand. Out of that five thousand rand  it was money that was coming into this company  

and we were sharing 50/50 with the investor. He  dictated the pace, I complied, I did all the work  

and we did many other deals out of that and  where he was bringing in the money I was doing  

all the work. Now having gone through in, I'm  like five years into this, when I'm literally  

doing this video, I have not put in any of my own  money into all these deals that I've been doing,  

but I've had investors coming in investing in all  of these deals. And I'm of the view that if I can  

do it you can do it too, but the learnings that  I got out of this deal that I just want to share  

with you is that three key learnings. Learning  number one is that it's not about capital,  

it's not about capital. Money is available  everywhere. Money is available everywhere.  

People actually don't know or people  actually want to invest somewhere,  

but the people that have  opportunities are very little,  

so if you are one of those people  who are wanting to learn how to do,  

how to find opportunities there is money, you  just need to know where to knock on which doors.  

That is point number one point number  two in terms of my learning was that

when it's about finding opportunities, the  moment you have more opportunities on your table,  

you are guaranteed that you're always  going to have money following because  

money always follows the good deals  right. People invest in good deals  

and that's what I realized on this first  deal of mine and I said to myself, well  

I am continuously going to be looking for good  deals like this and that's all I do. All I do is  

look out for good deals. The last thing is that  you don't have to do everything on your own. You  

don't have to do everything on your own. If you  look into this partnership here that I've got,  

I've got the guy who's coming in with the money on  one side and myself on the other side and together  

we are creating a symbiotic relationship where  they bring in the money, I've got the deal and  

together we are making money out of that deal and  we're doing what we love to do in our own spaces.  

If this is exciting to you, on how I actually  invested on my first deal for a thousand rand,  

I am sure you can do with no money at all, all  you need to do is to learn how to do these deals.  

Learn how to find these deals and I saw plenty  of them. My name is Taurai Jack it's been great  

hanging out with you on this video and if  this is something that you enjoy watching  

and if there's been of value and you've got  any questions drop them in the comments below  

but don't forget to subscribe. It's good  having you around, cheers, god bless, goodbye!