re:Equity, I think it's a mistake to equate "listing price of property" to "value of property". As a result of equating the two you ended up with an "equity" of R150k. Of course, unless there's some calculations that you did to that one is not aware of that made you conclude that the R900k listing price was in fact the value of the property. Lastly, sellers ALWAYS put up higher price tags knowing fully well the potential buy will ALWAYS want to negotiate and of course the seller will "negotiate" only up to the "fair" price which is what I would call the "value of the property" (not always).
Great video and I really enjoyed the open minded discussion at the end about different strategies. I live abroad at present so multi-let is a much more complicated strategy to follow, so for now we do follow a single let longterm growth strategy, but multi-let will definitely be something I would like to get into when we return to SA. I have completed your course and found it extremely insightful and even found a lot of cross over information! Keep up the great work Louis!
Thanks for watching and adding valuie in the comments. I totally understand. One of the main advantages of single lets is that it's much safer and really easy to manage. It makes a lot of sense if you want something low maintenance. The multi lets are definitely a more hands on approach and overall there is just more maintenance involved. Thanks for supporting the channel and investing in the course 🙏🏻🙏🏻
How do you gauge the value of the property? For eg. Did you just assume the property was worth 900k because that was the selling price? Or did you get someone to evaluate it for you?
I would do an asset 4 share where you can transfer the properties into the company's name in exchange for shares in the company. Without the need to pay transfer fees. An accountant should be able to assist you to do it. Or contact jaco grobler at prosperity enteprises. You can google them. Louis made a few videos with him.
Nest to transfer to a company or trust. But remember, you will have to buy them under the entity you want to register into which means your credit affordability needs to be good.
Hi Louis, I have done excellent on a multi-let property myself, it's a little gold mine... To my horror I have discovered when applying for a new home loan in 2024 that conventional banks do not consider these multi-tenanted rental income streams whatsoever, ie place a zero premium on rental income that doesn't strictly conform to being a single-let income, although they do consider the multi-let existing mortgage and expenses as part of my monthly commitments, jeapordising any chance of buying another property. I'm stunned at how beaurocratic and senseless the banking regulations are. Yikes
Good day, I trust you are well. In your experience, what is the usual angel investor interest amount when making a property deal? E.g. I want to give money for someone to flip a property. How much interest would the average angel investor demand?
Hi. Great video. I just want to know how do you refinance when you renovated it from single let to multi let. Did you change building plan. How do you do it?? Please advise.
This multi let strategy can actually make you more money and you can end up affording more property 😮 There are affordable Sub R850k properties in Cape Town that this strategy can also work Interesting how this property thing works. Parking bays people are charging R500 per month Louis you need to increase to least R250 per month 😊
Thank you for great content. Does this apply on new development complex also, cz i have one apartment and negative cash flow, renting it as single let. Do i have to get consent from the body cooperate for doing that or i can just do it. Please advise on how to go about.
Thanks for watching. You can still apply this strategy with new developments. You will have to check the body corporate rules. But most of the time they will say something like; no more than 1 person is allowed in a dedicated room. So you will be able to rent out existing rooms but not at additional rooms. Hope this helps
How do yo secure good, low risk tenants ? If you are letting out to Students, do their parents sign off the lease ? It does seem risky given the law is more on the tenants side when things go bad. How do you screen potential Tenants ? I have 2 flats and all I ask for is bank statements for a transacting account and Pay slips. What are some other tools that you use to find the rotten apples ?
You cannot use asking price to calculate equity. Asking price is not what a property is worth. Better to use a bank valuation, because you can get a loan for that amount, which is actual equity
Asking price is based on market valuation. I make my equity assumptions based on TPN reports , Muncipal valuatioms and bank valuation. Again, the video is just to simplify the idea. I have other videos going in much more detail about this topic.
I dont know how you can get to R20k per month on a R750k property. Tenants in bloem wont pay you that much money sharing rooms or even living in their own units on a small stand. If you let to students, you can get slightly higher monthly returns, but your cycle is not 12 months it is only 10 months due to holidays. You also have to allow for lower than 100% occupancy. This video over simplifies properties and has a way too optimistic outlook, which rarely translates in the real world.
Die feit dat NSFAS se keuring vir studente strenger geword het beteken minder kry finansiering en dit beinvloed ook die mark,ek sou se daar is n over supply van studente akkomodasie.Bloemfontein is klein en het min studie opsies as n mens dit met plekke soos Pretoria vergelyk.Besigheid is maklik as n mens die somme maak en dit werk nie altyd in die regte wereld nie.Ek dink die video is maar net n advertensie vir die kurses wat hy verkoop.
Of course the video simplifies the idea. Its one 9-minute youtube video. What would you expect ? The 21k is 4 single rooms and 1 sharing room, which gives you 21k. Like you might have heard, the expenses for the multi let is much more which accounts for vacancy and only 10 months income. For more details check out some of the other videos on my channel
@@louisreynhardt interesting and thanks for sharing, what kind of a property is this? and where is it located. I have only seen 1 bedroom(or 2 bed if a lounge is converted to a room) going for around that price. Which area did you get a 4 bed for that price. I am just curious.
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re:Equity, I think it's a mistake to equate "listing price of property" to "value of property". As a result of equating the two you ended up with an "equity" of R150k. Of course, unless there's some calculations that you did to that one is not aware of that made you conclude that the R900k listing price was in fact the value of the property. Lastly, sellers ALWAYS put up higher price tags knowing fully well the potential buy will ALWAYS want to negotiate and of course the seller will "negotiate" only up to the "fair" price which is what I would call the "value of the property" (not always).
Sal like om te sien hoe jy bloem se buurte analiseer vir woonstelle, en hoe dit vergelyk met eiendom in die kaap
Welcome back guys, we've missed you. Thanks for a great video once again. Brilliant strategy
Any advise for us starting our own flipping house business?
Thanks for the information it's insightful and something to explore, thanks
Great video and I really enjoyed the open minded discussion at the end about different strategies. I live abroad at present so multi-let is a much more complicated strategy to follow, so for now we do follow a single let longterm growth strategy, but multi-let will definitely be something I would like to get into when we return to SA. I have completed your course and found it extremely insightful and even found a lot of cross over information! Keep up the great work Louis!
Thanks for watching and adding valuie in the comments. I totally understand. One of the main advantages of single lets is that it's much safer and really easy to manage. It makes a lot of sense if you want something low maintenance. The multi lets are definitely a more hands on approach and overall there is just more maintenance involved. Thanks for supporting the channel and investing in the course 🙏🏻🙏🏻
How do you secure good tenants? Do you use an agent?
It's best to use an agent
My course and coaching program : payhip.com/LouisReynhardt
Great video, and a strategy I would never have thought of! Thanks for this and good luck to you on 2025!
How do you gauge the value of the property? For eg. Did you just assume the property was worth 900k because that was the selling price? Or did you get someone to evaluate it for you?
Hey buddy! With the arrival of the new season, we’re all together again this year.🤝🏿👍🏿
Does it make sense to transfer 3 houses to the company account or is it more convenient to leave them in my name?
Also plan is buy extra 7 houses.
This is a great question.... I'd also like to know the answer !
I would do an asset 4 share where you can transfer the properties into the company's name in exchange for shares in the company. Without the need to pay transfer fees. An accountant should be able to assist you to do it. Or contact jaco grobler at prosperity enteprises. You can google them. Louis made a few videos with him.
Nest to transfer to a company or trust. But remember, you will have to buy them under the entity you want to register into which means your credit affordability needs to be good.
Hi Louis, I have done excellent on a multi-let property myself, it's a little gold mine... To my horror I have discovered when applying for a new home loan in 2024 that conventional banks do not consider these multi-tenanted rental income streams whatsoever, ie place a zero premium on rental income that doesn't strictly conform to being a single-let income, although they do consider the multi-let existing mortgage and expenses as part of my monthly commitments, jeapordising any chance of buying another property. I'm stunned at how beaurocratic and senseless the banking regulations are. Yikes
Good day,
I trust you are well.
In your experience, what is the usual angel investor interest amount when making a property deal?
E.g. I want to give money for someone to flip a property. How much interest would the average angel investor demand?
Hi. Great video. I just want to know how do you refinance when you renovated it from single let to multi let. Did you change building plan. How do you do it?? Please advise.
This multi let strategy can actually make you more money and you can end up affording more property 😮
There are affordable Sub R850k properties in Cape Town that this strategy can also work
Interesting how this property thing works.
Parking bays people are charging R500 per month Louis you need to increase to least R250 per month 😊
Thank you for great content. Does this apply on new development complex also, cz i have one apartment and negative cash flow, renting it as single let. Do i have to get consent from the body cooperate for doing that or i can just do it. Please advise on how to go about.
Thanks for watching. You can still apply this strategy with new developments. You will have to check the body corporate rules. But most of the time they will say something like; no more than 1 person is allowed in a dedicated room. So you will be able to rent out existing rooms but not at additional rooms. Hope this helps
Do you mind breaking down how you'd make 21k from the multi-let strategy please?
I would also like to know this please.
yeah.. i was also waiting for that... 3 bed house renting out a room at 7k each ? i don't think so for Bloem
It's detailed in his course and coaching programme. Link to it is in the description. @@ReaperOfBread
@@jamesblack7922 correct, that'd be very steep. It perhaps involves making more units out of it. Guess we gotta get the course to find out 😉
How do yo secure good, low risk tenants ? If you are letting out to Students, do their parents sign off the lease ? It does seem risky given the law is more on the tenants side when things go bad. How do you screen potential Tenants ? I have 2 flats and all I ask for is bank statements for a transacting account and Pay slips. What are some other tools that you use to find the rotten apples ?
Credit reports??
Louis you didn’t explain how you did it 😂, did you split the rooms are ppl sharing?
This property consisted of 4 single rooms and 1 sharing room. It is tenanted to 6 people 💪🏻
Is it possible to follow that strategy by living abroad? Any company in South Africa able to manage my property while I am not around?
"Nong wealth", I trust them
You cannot use asking price to calculate equity. Asking price is not what a property is worth. Better to use a bank valuation, because you can get a loan for that amount, which is actual equity
Good point, that AND market price. What does the market valuation say about the property.
Asking price is based on market valuation. I make my equity assumptions based on TPN reports , Muncipal valuatioms and bank valuation. Again, the video is just to simplify the idea. I have other videos going in much more detail about this topic.
I dont know how you can get to R20k per month on a R750k property. Tenants in bloem wont pay you that much money sharing rooms or even living in their own units on a small stand.
If you let to students, you can get slightly higher monthly returns, but your cycle is not 12 months it is only 10 months due to holidays. You also have to allow for lower than 100% occupancy.
This video over simplifies properties and has a way too optimistic outlook, which rarely translates in the real world.
Die feit dat NSFAS se keuring vir studente strenger geword het beteken minder kry finansiering en dit beinvloed ook die mark,ek sou se daar is n over supply van studente akkomodasie.Bloemfontein is klein en het min studie opsies as n mens dit met plekke soos Pretoria vergelyk.Besigheid is maklik as n mens die somme maak en dit werk nie altyd in die regte wereld nie.Ek dink die video is maar net n advertensie vir die kurses wat hy verkoop.
Of course the video simplifies the idea. Its one 9-minute youtube video. What would you expect ? The 21k is 4 single rooms and 1 sharing room, which gives you 21k. Like you might have heard, the expenses for the multi let is much more which accounts for vacancy and only 10 months income. For more details check out some of the other videos on my channel
@@louisreynhardt interesting and thanks for sharing, what kind of a property is this? and where is it located. I have only seen 1 bedroom(or 2 bed if a lounge is converted to a room) going for around that price. Which area did you get a 4 bed for that price. I am just curious.
Can you make a video of buying a share in a property, I saw on property 24. Etc R50 000 wil give you the property for two weeks every year