Poor quality tenants are rife. They pay for the first two months and then squat. You’ll have to get a court order to get them out. I’d be very wary of buying up flats in crime ridden areas.
Absolutely, managing tenants can be tricky, but the drama is part of the charm. We've got a tight tenant screening process and effective eviction strategies, which we barely use BTW. Let's face it - every business is a game of high stakes poker, and every entrepreneur knows that risk is just the entry ticket to the wealth-building show. Me? I'd rather play the game and chase the big wins than sit on the sidelines of employment counting pennies till retirement. You gotta risk it for the biscuit, and let the crumbs fall where they may!
Hi there! Is there a business reason why you'd rent out a 3 bedroom unit without a stove? I feel that when a tenant brings their own stove solution (two-plate, etc), it becomes a fire hazard, plus potential damage to counter tops. I know nothing about owning property. Just from observation as a serial tenant (lol). Thanks in advance! x
Hi Pamela, there is pros and cons to every decision. To provide a stove can help you attract a good quality tenant, but it can also be costly if a tenant breaks the stove early in their tenancy. We have opted to put stoves in, but have also agreed terms in the lease agreement that the tenant is liable to pay us back should they break the stove within a certain time period.
Hi, I am a fellow south african, 19 years old I love watching your videos, you have thought me alot and I am super great full Looking forward to purchasing and renting out my first property😁
I appreciate your enthusiasm for improving your financial situation, especially at a young age. Starting in the property market is a smart move, and you're on the right track. Here are the key elements you'll need to get started: 1. Stable Income Stream: Having a consistent income source is crucial for managing expenses and securing loans if needed. 2. Good Credit Score: A good credit score is essential for obtaining financing from banks. It shows lenders that you're a reliable borrower. 3. Seed Capital: It's wise to have some initial capital to cover expenses like a deposit, legal fees, or repairs. Having at least R100,000 is a reasonable starting point. 4. Knowledge: Educate yourself about the property market, including areas like property valuation, market analysis, legal aspects, and property management. Knowledge is your most valuable asset in this field. Check out my content on Udemy: www.udemy.com/user/laurens-boel-2/
Welcome back to SA Laurens😊 .... That was a good deal at good price...My take is the maintenance and service rates could possibly be high and could be a reason for the reduced price or you were just lucky to get a seller who was fatigued from too many offers. Was it from Private auction or Sherrif auction ? ... Love the work done on the units👌🏽
Thanks :) it's good to be home. A bit of both. It was a very fatigued and motivated seller and the building needed ALOT of TLC. At auction, you can sometimes get lucky, and this was an example of that. This was from a private auction. And thanks, I think the units look good too :)
I bought similar properties on a bigger erf in East London Rsa, The selling price was R700k, absolutely nothing wrong besides the land looking like an overgrown forest, and the whole building needed paint. This property was left to 3 nerds who knew nothing of what they had, but they had initially put it on the market with no luck, i was referred to this property by one of my clients and I just made an offer of R650 and that was that. Most of the properties i buy are intercepts and i make sure i always have cash to get the property before they have time be think about it.
If you like these kinds of properties you should look in the old south of Jo'burg. I'm a landlord and have five properties similar to this spread from Rosettenville to Forest Hill. There are literally hundreds of small flat blocks like this in the area, so new stock is constantly coming onto the market. In addition there are few property investors actively looking for new stock in the area at the moment, so prices haven't moved in five years or more. The returns are amazing if you can stand the risk.
I believe that hijacking occurs when the landlord doesn't look after the building and the tenants. Then opportunisitic criminals take advantage. But if you are a good landlord, you maintain the property well and ensure your tenants are happy, hijacking is a low risk. In 10 years of investing, I've never experienced any threat of hijacking or protection fees at any of my buildings.
There's deals like this and even better all over the show especially block of flats. You invested close to R1.6 million in cash to make R9K pm fully let. You still need to write off app 15% pm on losses (maintenance, empty units and headache payers/tenants) - In post covid you'll need to keep dropping your rent to be fully let or your empties will equate to at least 10% of the building or townhouse complex. Jobs are a problem at the moment thus owners will keep fighting for tenants - However life is about chance and risk and we need to take it whenever we can - Wishing you guys every success
The cashflow is low because we refinanced the property and pulled out most of our capital. The R9k cashflow is post tax and a healthy 20% provision for bad debts and maintenance. Quality tenants are hard to come by, but providing quality finishings does help. I appreciate your well wishes, but we don't need luck. We have experience 👍
We had to prioritize the renovation budget, and unfortunately we couldn't afford to do showers as well. Once we've had the property for a couple months and started generating revenue, we could consider doing that.
Welcome to my channel and glad you are enjoying my content :) I don't do masterclasses, but I do have short courses on Udemy (www.udemy.com/user/laurens-boel-2) and I have a one-on-one coaching program where I help investors buy property. For more details, check out my website: laurensboel.com/property-coaching/
Hi there, unfortunately not having seed capital would prevent you from joining my program. My program is all about practical application of the theory and if you don't have the seed capital to execute a deal, then the coaching isn't valuable. Save up the R100k and then reach out to me :)
We have zero tolerance for sub-letting and do quarterly inspections. By providing a good quality product and doing thorough vetting of tenants, you can reduce the risk of delinquency.
@willemdelange5042 I have 10 years of experience and haven't had an issue with squatters. Every business has challenges, it's about finding ways to solve them that's earn you a profit.
Hi Ricardo, it depends what kind of strategy you are trying to execute and how much time capacity I have available. You can find out more details on my website and book an intro call where we discuss the options. laurensboel.com/property-coaching/
But do you know some of the places on Jozi? i will give you 3 months and you will cry, people don't wanna stay in that place it's not safe. Some of this fools are misleading people just to create youtube content, Jhb is a lost place and it's crap.
@@user-eb7wv5wt3j I'm curios, do you own any properties here, or are we just trading rumors today? Sure, Jozi's not without its drama, but writing it off? That's like saying you shouldn't invest in tech because you once forgot your email password. Property remains a top-tier choice for building wealth-just ask any mogul. I dive into the riskier markets, but that’s where my decade of experience and a rock-solid team pay off. Our properties are secured with electric fencing, safe parking, and alarm systems, attracting more tenants than we have space for. Misleading? You are crazy. Subscribe to my channel, you might learn something.
Yes, in over a decade of investing in higher risk areas, I've had my fair share of bad tenants. Deliquent behaviour is part of the territory. With a good vetting process, it's possible to reduce the risk by only placing quality applicants.
I can't remember. It's less about which auction house and more about what stock that is available. I don't mind buying from any of them, as long as the stock is good. Focus on the stock, not the brand.
Dude you must be crazy, who wants to stay in that place ? many of us are running away from places like that it"s not safe anymore and you will have problems with black people renting on future. i will not even stay in that place for free.
Thanks for your input, but guess what? We filled all 7 flats in under two months with good tenants who have affordability and decent credit scores. And they appreciate the condition of the building and close proximity to city centre. As for your offer to stay for free? We're all booked up-and frankly, we only have room for respect here, not racism or negativity.
