5 Insider Tips to Real Estate Investment That Could Make You Millions
Updated: Oct 14, 2019
In South Africa, successful real estate investors are a minority. In fact, I was even approached at an event asking how I became successful in such a “closed boy club.” But it doesn’t need to be that way! Real estate investment in South Africa can make you millions- if you know how to do it right. Here are my top 5 tips for profitable real estate investment:
When you invest in property in South Africa with the goal of building wealth, you need to buy well. There are thousands of property deals online right now. How do you know which ones will make you money? Oftentimes, those new to property investment in South Africa get distracted by shiny things. Maybe they see a beautiful investment property or speak to a so-called “real estate guru” that looks promising. While these opportunities may look like they have potential, they could be bad deals.
You make money in property when you buy well. Be sure to do your research before signing any offer to purchase a property. You can find more information about buying well on my free Infinite Property platform.
Avoid estate agents- or work with the right ones
The number one way to be successful in business is to maximise your profits while reducing your overhead costs. Estate agents will cost you money. This is why I suggest avoiding them when possible. While they do provide a helpful service, their fees can add up until you’re only making a portion of your expected profit.
However, another way to invest in property in South Africa to make millions is to pick the right kind of estate agent. In my experience, there are two types of estate agents: negotiators and dealmakers. Negotiators will waste your time and money trying to find the “perfect” deal- for them. Even if the property is overpriced, they will push you to buy it so they can make the best commission.
Doing this will mean that you buy a liability rather than an income-generating property.
Deal makers, on the other hand, want to build relationship. They will work with both the investor and the seller, do thorough research to find good deals and only pick deals that fit with the investor’s long-term vision. If a deal falls through for any reason, a deal maker will work tirelessly to find another better deal for the investors.
Buy distressed properties or buy from distressed sellers
Some deals take longer to close than others. However, the faster you close deals, the more money you