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 can make in less time. Thankfully, there is a simple way to find these fast closing deals: buy distressed properties or buy from distressed sellers.
Those who invest in property in South Africa use the term “distressed property” to mean any that will be sold below market value, such as foreclosed homes. “Distressed sellers” are those who want to sell fast due to personal issues such as divorce, debts, relocations, etc.
Focus on big deals
There are so many ways to invest in property in South Africa. Deals range from a few hundred thousand rands to hundreds of millions of rands. However, something that I learned early on in my career as a real estate investor is this: The amount of time spent on a big deal and the small deal is almost the same, but the rewards are not.
This is why it’s crucial to work smart and not hard. Focus on securing big deals to ensure that you build a strong reputation, generate wealth and don’t waste any time.
Know your market
Warren Buffet once said:
“Be Fearful when others are greedy and greedy when others are fearful.”
When it comes to property investment, this saying couldn’t be more true. In order to make a profit when you invest in property in South Africa, you need to be smart. The only way to make sure you spot good deals- and never overpay for a property- is by knowing your market.
However, the real estate market is constantly changing. You can’t take a real estate course once and then expect your business to excel for the next 20 years. Instead, you need to keep tabs on the market daily and stay constantly learning.
I truly believe that everyone who invests in property in South Africa can become a millionaire. You don’t need to waste years of your life trying to figure out how to become profitable in this industry. Instead, check out my Real Estate Wealth Mentorship Program. In my program, I teach people how to invest in properties that turn a profit from day one!
Hi, I’m Ezra Rasethe, an entrepreneur, real estate investor and coach who facilitated millions of rands in investment opportunities in just 3 years. This year, I am launching my Real Estate Wealth Mentorship Program where I help 20 real estate investors start, grow and scale their businesses. Are you interested in becoming a real estate mogul? Click HERE to schedule a FREE mentorship call with me and gain access to exclusive resources.