I Made R250 000 TAX FREE in 6 Months | South Africa
Vložit
- čas přidán 21. 10. 2023
- I Made R250 000 TAX FREE in 6 Months | South Africa
If You would like to get early access to my Property course or possibly qualify for a discount send me an email at Louisreynhardt@gmail.com
SIGN UP at Seeking Alpha with this link to get a 14 day free trial : seekingalpha.me/LouisReynhardt
(If you can spend Hundreds of rands per month on Netflix/ DSTV you might aswell spend it on something usefull like Seeking Alpha)
Join this channel to get access to perks and one on one sessions:
/ @louisreynhardt
If you enjoyed the video, please share it with your friends.
SUBSCRIBE TO MY CHANNEL : / @louisreynhardt
___________________________________________________________
#PersonalFinance #Investing #RealEstate #JSE #Shareholder #Markets
___________________________________________________________
Connect with me:
Instagram : @LouisReynhardt
Twitter : @LouisReynhardt
DISCLAIMER: I`m not a financial advisor and hence the content of these videos are for educational and entertainment purposes only. Investing is a risk related practice and should be approached carefully.
40% income tax for money above a million is crazy. Need to leave this country its nonsense
Very good Louis. Insane to me how you share these strategies to the public…good on you man. 💪🏽
Dankie Brother waardeer die comment 💪🏻💪🏻
Yeses Louis u really giving us the blueprint here. Baie Dankie!!!
Pleasure my friend 👊🏻😁
Your explanation is so clear anybody can understand it. Thank you
Thank you. Means a lot. I'm glad it can help 🙏🏻🙏🏻
Thanks Guys, another great video. Would definitely consider doing the course when it's complete.
Thanks alot my friend. Appreciate the feedback. Will be keeping you guys updated with the progress of the course. Feel free to pop me an email for early access.
Great value. Thanks for the vid Louis 👍🏾
Pleasure my friend. Thanks for watching 👊🏻 😎
Thank You Louis for sharing, loving your content
Thanks for watching. I appreciate it 😁 🙏🏻
0:27 I asked this question the other night, now this video somewhat answers it, multimillion rand portofolio👍🏻. Good job man
💪🏻💪🏻💪🏻
Die video het my laat subscribe. Goeie werk🎉
Welcome!!! Ek glo jy sal nog baie hier kan leer 💪🏻😁
Ek ook
Great video, great information 🙏🏾🙏🏾
Thanks so much. Appreciate he feedback 🙏🏻 😀
Hey Louie, great video man. Really enjoyed this one.
Thanks a lot my friend. I'm glad you liked it 😎🙌🏻
Hi Louis hope you are good brother. My name is Mos and Im a new subscriber, actually subscribed to your channel this past weekend and I must say I absolutely enjoy the beneficial info you provide. I can’t thank you enough. I’m a contractor by profession with a 4CE construction company, still in my early 30s I have been trying to find new ways to invest my money and I have always loved property. Im based in Centurion but I’m around JHB and PTA so I hope we meet sometime over coffee just to learn more and more. Because I don’t know much about the property industry. But I’m very much interested
Hi Mos,
Thanks for watching, and welcome to the channel. Luckily, in your area, there are a lot of potential deals around. You can always send me an email at louisreynhardt@gmail.com if you have any specific questions or would like to book a Zoom call. Feel free to eatch the real estate playlist on my channel. It should answer a lot of your questions. Thanks for your comment 👍
@@louisreynhardt awesome stuff. Thank you sir. Will definitely keep in touch. Thank you 🙏🏽
Appreciate the insights Louis! Have recently come across your channel and you've got a new subscriber...Hope you don't mind me calling your bearded Louis ;D , Looking possible to a meet in the future to discuss the vehicles you are so kind to share your knowledge on . Wishing you great weekend ahead Mnr.
Thanks for the positive feedback my friend. Bearder Louis sounds cool 😄
Feel free to pop me an email st louisreynhardt@gmail.com for future courses or one on one's.
Thanks for watching brother 🙏🏻
Can't wait for the course 😁🔥
Thanks my friend appreciate the support 🙏🏻 🙌🏻
Yess please, would love to know how to learn more and start with properties and build a portfolio!! A Course would be awesome
Thanks so much for the positive response. Feel free to send me an email at louisreynhardt@gmail.com to get early access. I will keep you updated with the progress. Thanks for watching 👊🏻😎
Nice, i would love to take the course when its available
Great stuff, thanks for watching. You can send me an email at louisreynhardt@gmail.com to get early access with some discount. 😁👊🏻
I like the way you simplify this type of business 🤙
Thanks my friend appreciate the comment 🙏🏻
This strategy works, im building my property portfolio using it. Great video, thank you 🙏🙏🙏
Awesome stuff. Thanks for sharing 👊🏻 👍 😀
Hi Louis,
I've always wanted to invest in property. I'm extremely hesitant because I have zero understanding in this field, plus I'm stuck on a farm with a family to feed. (Not complaining)
You seem to know your stuff.
A coarse for dummies would be amazing!
Cheers Jack
Thanks for the feedback Jack. It's important to gain the right knowledge first. A lot of people just jump into property blindly and make costly mistakes.
Luckily, property can be semi passive, so your job should not be a problem when done correctly.
Thanks again for watching 🙏🏻🙏🏻
First things first, go to the bank and see if they will give you a loan. Most people in South Africa don't qualify unless they have the assets to put up as collateral and the if you fail, your assets are also gone. Good luck
It's more than possible to get a loan without any assets. if you have a good income and a good credit score and have disposable income, you can qualify. Theres also programs to help lower income earners.
Nicely explained !
Thanks alot 😎👊🏻
Great and informative information, although it needs more depth about costs like renovation and registrations on both properties would be more helpful.
Thanks my friend appreciate the suggestion.
I'm trying to keep it short and simple. I will be offering an online course covering this in detail in the near future as well as many other important topics.👊🏻
@@louisreynhardt please keep us updated about release dates,your work can expose people to opportunities and information to improve standards of living
@djstylesofhousemusic3084 Thank you my friend. The goal of the channel is to help others gain the right knowledge to improve their financial possitions. I hope this can make an impact on many South africans lives. Ill make a post about the course. Feel free to send me an email at louisreynhardt@gmail.com yo gain early access with some discount 👌
This was interesting,I would actually buy your course if you could compile a thorough step by step guide.
Thanks for your comment. The course will include a step by step guide, real life examples and a free session with me to discuss everything once the course is completed and many more. Send me an email if you would be interested to get some early access discount.
Thanks for the video sir. I need you as my mentor.
Thanks for watching my friend. Keep learning 💪🏻💪🏻
Louis bro you're a blessing, the way explain everything just makes sense for anybody trying to get into the property game. Really appreciate your content
Thanks my friend. I really appreciate the feedback. As long as you can learn on the channel, im happy 💪🏻💪🏻
I enjoyed the video... I'd really like a video that explains access bonds and the people you need in your corner to help make these transactions like refinance easier
Thanks for your comment and for supporting the channel. Great suggestion. These are topics that I covered in my soon to be launched properry course. Let me know if you would like some early access discount 😉
you explain things very nicely - good quality to have. Earned a sub boeta. I do things a little differently but we all have our strats. You have some balls buying those flats. Well done. This strat does not work very well in cape town (for those thinking about it).
Thanks so much my friend. Appreciate the feedback. That's why property is so interesting because there are so many different ways to make money. Thanks for sharing 👍
I'm keen to know why you believe this strategy does not work very well in Cape Town. Let me know my friend !!
Amazing information you a great mentor
Thanks so much. I really appreciate your comment 😊 🙏🏻
lovely vedio. Good to see that locals are adopting the Bigger pocket's BRRR strategy. I love it. Quick questions. 1. How much was bond registration, how much did it cost you to refinance, how much was the bond-levies-rates of the first flat after you pulled your money out?
Thanks so much for the feedback.
The registration and transfer was around R35k with the initiation fee.
The refinancing itself cost R0 because I registered the property for more in the beginning.
The bond was around R600 more after using the money for the second property. The levies and taxes stay the same. Hope this helps. I will be making a furure video where I run the numbers. Let me know if you would be interested in seeing this.
@@louisreynhardt thanks for the clarity. That refinance of Zero, I'm really interested in that one. I am refinancing as we speak but maybe it's costing me money only because I am moving my properties into a company with having to re-register the bond
@musawenkosimakhoba9028 re registering will cost money, but even if you keep it in the same entity and you did not register the bond for the additional amount from the beginning it will also cost money. So the trick is to register the bond for more from the start 🙌🏻
Hey how you doing man? This is a solid strategy you’ve got going on here.
Here’s a question,
I’ve got a property in a middle-class area, I am in my first year of leasing it, and obviously taking a negative hit on the bottom line on that one. Rent is around R8500 including water for the tenant.
And I obviously have the rest, rates and taxes, Levies etc. which is what drags the negative even deeper.
What would you suggest, get out of these higher income properties and focus more on the lower income properties, especially for the BRRRR strategy, because it is the easiest to effect without drowning in debt.
NB: I know this is not financial advise, and only an opinion (if you respond hehe)
Thanks for a great video
What's up man, thanks for reaching out. It really depends on what your end goals are. Is the prooerty owned within your personal name? Do you plan on buying more properties? Another thing to understand is , when you haven't registered the property for more than its purchase, price refinancing will actually cost you money ( basically the amount of registration for that specific value)
I would say to first gain the right knowledge and understand what you want to do.
Something you can work on is to keep raising the rent to minimize your shorfall and make sure you can build a reserve fund for that property .
If you want to figure out a plan, feel free to send me an email at louisreynhardt@gmail.com
Had the same in mind...That's a solid strategy 👌... I see the Americans do the same...Wasn't sure we could do it here...
Thanks my friend. It can work anywhere when implemented correctly. As long as you understand running the numbers 🙌🏻😎
Thank u very much great content as allways 1 question have u ever thought of buying properties outside South Africa and how dus dat work ?
@sihlemasondo2898 Thanks for watching. At the moment, I am only planning to invest in SA because I have the knowledge to do so. I do not plan to invest abroad in property any time soon.
Beslis waarde vol sal jou more of maandag email
@@louisreynhardt more louis eke het toe vir jou n epos gestuur hou maar die oe oop vir dit asb 🙏🏼
Came I across ur channel yesturday sir...much love from Botswana 💯
Thanks my friend, welcome to the channel 😀 🇿🇦
👌🏾You're awesome. Do you mentor or have sessions? Thank you for this info and video....l'm lov'ng it❤
Thanks my friend appreciate it.
Yes I do one on one sessions and will be launching a in depth course soon. Feel free to send me an email at louisreynhardt@gmail.com to find out more
I like your finishes, where do you get your ideas of beautiful finishes. I am based in Jhb looking for quality workmanship
Thank you very much. I just created a moodboard and tried to execute the look.🙌🏻
Hello Louis, what areas were the 2 flats in that you mentioned in the video?
Hi, these were Westdene / CBD area💪🏻
Hi Louis
Another great video. 🔥
Congrats on your R400k strategy video performing so incredibly well. 🎉 The more people who see it the more benefit.
We've traditionally focused on the entry level market but usually in the R550k - R600k region.
We find it very interesting how affordable the properties you find are. They naturally come with a different calibre of tenant, but nonetheless, we love how you are able to purchase such affordable properties and therefore achieve positive cashflow and keep refinancing and growing your property portfolio.
Thank you for sharing.
Wishing you all the best.
Timm & Justin
Where do you guys invest?
@Rossxcrawford we invest in Cape Town.
But we started off in Durban & Pietermaritzburg.
In certain suburbs in Cape Town like Bellville, Gordons Bay and Kraaifontein we managed to purchase properties at this price level.
And they weren't "cheap looking" properties, they were really decent.
Some good opportunities still exist if you look carefully.
@@moneyreimagined That’s great, i live in Somerset west and the development recently is crazy. I want to start investing nearby
@Rossxcrawford that's awesome that you're also looking to invest.
What's great about the more affordable properties is that:
-They're cheaper and so you can get a bond more easily.
-Your tenant pool is bigger because more people can afford your rent.
-Your risk is diversified because if you have 2 x R600 000 properties, and you your one unit is empty, you're still getting rent from the other unit. Whereas if you take the R600 000 x 2 (R1 200 000) and buy only one property, if your house is not let, you're losing R12 000 per month.
-The other benefit to buying cheaper houses in good areas is you don't pay Transfee duty which you would have to pay on property that cost R1.1 million or more.
Some body corporates you can check out are:
Gordon Sands in Gordon's Bay.
Mont Blanc in Gordon's Bay
The Palms in Bellville
The Pines in Bellville
The Oaks in Bellville
Buhrein Estate in Kraaifontein
Hope that helps Bud.
Louis is dropping gems with his videos lately. So nice how he shares his knowledge freely.
Thanks man,
Generally these properties are not easy to find. I make at least 10 to 20 offers before 1 gets accepted. Fortunately, I understand my market very well.
All my lower income flats are being rented to people that earn a decent income of usually around gross R20k pm, so not necessarily risky tenants. These people also have good to great credit scores.
Great looking properties attract great tenants. Usually, bad tenants are a reflection of a bad landlord.
I found that any deal in any price class can work if you know what to look for. I own multiple properties in the R550k to R650k range that perform just as well. But they were difficult deals to find. These properties generally have large shortfalls 90% of the time.
Property is so interesting because everyone can invest in a way that they prefer.
So you bought the first property for 300k then borrowed 450k, rented it for 4k, took the 150k bought the second property for how much? And how much you rent it for? You didn't mention bond registration fees, lawyer fees and transfer duty for both the places. From that how did you make 250k tax free?
Theres no transfer duty . Only transfer cost. Both were around R30k. Both were bought around R300k and both are now being rented at R4500. Part of The R150k was used for the registration and transfer cost and financed the rest.
@@louisreynhardt how much are the rates and levy for both the properties? So you got one loan for 450k, second loan around 180? So total borrowing costs 630-650k mark. Both rent for 9k total. Loan cost around 7k plus rates and levy. So you’re basically breaking even assuming all goes well. The bank also gave you a 100% loan? No deposit required? Not a bad investment for using the bank’s money. It’ll be very tough to pull off this method in the Western Cape.
@StantonRich This will not work in The WC. This is focused on specific areas. But yes the properties cash flow around R100 now with the high interest rate. But it also allowed me to buy more than just the 2 properties. Rates and levies are around R1k . Getting a below prime rate also helps. The principal is to use this money and let a tenant pay for it.
Hi Louis, can I please chat to you a bit about the refinancing. You mentioned something about paying the money back to the access bond? Where do you get the money to pay back the access bond? And how do you use that money on the next property?
Howzit, man, are you a member of the whatsapp group ? I see you are a member ? Feel free to pop the message on the group, and I can share the info a bit easier.
Great video, I’m excited for the course!
Thanks a lot. Pop me an email at louisreynhardt@gmail.com to get 20% discount on the course.
It's all finished just figuring out the payment issues. Will post details soon.
Thanks
Hi. Do u have a video on tenants who don't pay rent on time, and how u deal with them?
Yes I have a video covering this.
Check out this link czcams.com/video/KC-FqRz7NxA/video.html
Nice informative videos. Are there monthly levies involved in the flats that you buy?
Thank you very much. Yes, that's correct. Any or most sectional title properties have levies and rates that you need to account for. We do this by using ROI calculations. Check out some of my other property videos where I do this.
Thanks for your response. Love this strategy especially with the lower income housing opportunities which is good for beginners
On the 1st property, how did you register a bond with R450k without actually proving the value to the bank that financed the deal?
The bank itself sends out someone to confirm the valuation of the property. This is why you need to buy at discounts and understand the market cap of your property.
In this same example registering it for R1m would be unrealistic. But staying within the market cap is important so you make sure youset realistic goals.
Where can I email you regarding your course that is going 2 be more expensive on 15th
Thanks for watching.You can pop me an email at louisreynhardt@gmail.com or follow this link to enroll in the course.
To secure your spot, simply click payhip.com/LouisReynhardt and follow the easy registration process.
How do you register the bond for more than the purchase price ? Do you apply for a bond with access?
Yes, some banks allow access to additional funds, but when you apply for the bond, you need to stipulate how much the registration amount should be
Hi Louis , which company or provider did you use to check potential clients creadit score?
I like using TPN for my tenant vetting. The platform has a lot of tools you can use. 👊🏻
Definitely interested in your strategy, I would like to meet up with you in person discuss this whole thing in person.
Sure man. You can always pop me an email at louisreynhardt@gmail.com 😎🙌🏻
What type of access bond do you use? 1 - Access to additional funds, or 2- payment reduction? 1 -Access to additional funds allows you to withdraw any additional money you put into the account, keeping the loan term and monthly payment the same. 2 - payment reduction reduces the loan by the value of additional money put in, reducing the loan repayment and keeping the term the same. When you refinance and funds become available in your account, does that not increase your repayment immediately as your loan value has increased?
Great question. I use the payment reduction option. I want to keep the loan term as long as possible and only pay for the additionalfunds once I use it.. When you refinance and park your funds in your access bond, you only pay extra for the amount you use. The first option will reduce your loan term, but from day one, you will pay more for your bond even though your money is in your access bond. This simply defeats the point.
The 1st option is focused on someone that wants to reduce debt and the 2nd option is someone who wants to take on more debt and leverage it to buy more property. Hope this answer's your questions 💪🏻
This strategy sounds good, but how do you manage risk? ie, if tenants don't pay the rent and you can't pay the banks....
Great question. Make sure you invest in cash flow properties and always have a healthy reserve fund for every property you own.
Sorry for bombing your vids with comments, appreciate the info alot though. Did you register a company or did you buy these properties on your own name? How long do you wait between "repeat" cycles? I'd really love to have a sit-down or how else can one contact you? I have a ton more questions
Thanks for your comment. I own no properties in my own name.
The cycle is usually around a year before I get the next property. The refinance can happen from around 6 months. But it also depends on whether you can find a good next deal within that time frame. I've done it in less time, but it's very seldom possible to find great deals so quickly. Feel free to pop me an email at louisreynhardt@gmail.com 👊🏻
Hi Louis, I love your content and it is really helpful. I just bought my second property. I have been planning to use the same kind of strategy. I just bought two properties in my name as an individual. Is it preferable to do it as a company for tax purposes? What are the pros and cons? Please set up a short course for such investing and how to navigate the system for maximum (tax) advantage.
Thanks for watching, and congrats on your purchase. There are many advantages like tax benefits, asset protection, growth potential, and estate planning. I will be launching a course covering this in Novemeber.
Let me know if you would be interested
@@louisreynhardt Yes, i am definitely interested.
I am interested in this too. I Just secured my parents house that I will have fully paid in 2 years and will be doing some renovations. After that I want to use this strategy to make money. This will be in a company name which will be my second company. So I understand the inner working of a company but would love to learn from you and get some tips for property investing
@@louisreynhardtinterested
Hey Louis, I am a 19 year old from Cape Town and love your videos, I just have one question, how do you maintain a property that is in a different province than myself because Cape Town's property is very expensive and doesn't have the cash flow % that is very low so that is my question and any advice would be greatly appreciated.
Hey bro, I’m from Cape Town as well. Would you telling me how you got into the property game? I’m interested
Cape Towns definitely on a level of its own. I’m from Cape Town and properties for R450k in hood areas is few and far beyond
Hey Jordan
Good question, the properties Louis are getting are so affordable. And the cashflow looks so good.
We've bought properties in Cape Town in Bellville, Kraaifontein and Gordon's Bay in the R550k - R700k range but they are slightly cashflow negative.
But atleast these types of properties are entry level so demand from tenants is good. And because they cost a bit more, their condition is generally much better.
It's nice to get Louis' opinion and expertise on these types of properties.
Goodluck Bud.
Thanks for watching. When running a property portfolio far from where you live, you have to have a good team on your side. Rental Agency, contractors, and attorneys etc. Leveraging these peoples skills will help you maintain your portfolio.
Cape Town itself is a different market, and you have to play the game it offers. Cash flow deals are still available in Multi let and studdent accommodation strategies. These are just more advanced strategies for most, and most people stick to single let residential, which definitely doesn't work. Unless you are looking for appreciation only. Hope this helps 🙏🏻
Glad I'm not the only Cape Townian that's in a bit of a scramble with regards with prices here in Cape Town. I'm considering looking elsewhere just to get into the property game and then take it from there.
Hi Louis, How do you register the property for more than the loan amount?
Yes Tiaan,
Jy reël met die bank voor die registrasie plaas vind dat jy die waarde van die eindom meer wil maak as die aankoop prys. Jy betaal dan meer vir registrasie koste in die begin maar dit spaar jou baie geld in die lang termyn.
Good evening Louis please help to advise me, I'm thinking of fixing my home loan do you think that at the current moment the interest rates will become lower or should I rather start the process to fix my loan this coming week please🙏🏾
Thanks for reaching out. I dont believe our rates will go above 12%
When you fix your rate, it can only be fixed for a short time and not the whole loan term. They also fix at a prime plus rate, meaning if the rates are 12%, you will likely be able to fix it at, for example, 12.5%
I won't fix the rate because chances are that the rate will go down 2nd quarter of 2024. Meaning to just keep the variable rate will be a smarter move. This is just my opinion though. Hope it helps.
Good morning Louis thanks so much appreciated your feedback, but the bank that I'm with will fix it at the current rate for 5 years then after that I can re apply if so needed
@andrewmatthews6669 I will definitely still not fix it. Ask yourself this, do you think they will benefit more when you fix the rate or if you will be the one who benefits more? I dont see rates going up much more, so chances are it will go down in the next 5 years, and then you have a high rate
I think I’m missing something here but you don’t mention how much you spend of rehab of the property?
Rehab is usually around max 10% of the properties value.
Hi Louis, what do you mean when you say you registered the flat for R450 000?
You register the property with the bank for more than you pay for it so you can eventually access the equity. This is a vital step. 💪🏻
On what website do u buy ur houses
I mainly use Property 24 to dearch for properties. Other options are private property or direct leads from agents
thanks bro
Pleasure my friend 👊🏻 😎
Is the course available
Yes it is,
You can pop me an email at louisreynhardt@gmail.com
To secure your spot, simply click payhip.com/LouisReynhardt and follow the easy registration process.
Hi I would like to know how the refinance part works ?
Check out this video buddy czcams.com/video/kyCRtQQaiTA/video.htmlsi=4Bbzzjc_uZJ77CNS
How did you learn this?
What is an access bond? How did you set it up?
How did you set up a trust?
All very good questions but difficult to answer in one comment. You can pop me an email at louisreynhardt@gmail.com if you would like to find out more.
It has taken me a few years, a lot of reading,mentorships, and courses to gain the right knowledge.
A acess bond is simply like a home loan savings account for extra payments. A trust can be set up for you by a company like Mazars for example.
It's interesting, what I had in mind but just don't understand how it exactly works in details
Hope the videos can help you. Have a look at some of my other real estate videos. It should help you 💪🏻💪🏻
Hi thank you for the video.
How does this make money? Can you help me pls
Say i want to do this for a living
Now i buy the property.
And must fix it up that costs money
Then im renting it out and pay taxes on that income,but i must still pay the bond back monthly.
How do i make money to live of?
Am i missing something?
Please if can help me.
You won't exactly draw a salary from the refinance itself. It can, however, allow you to buy more properties that hopefully cash flow. The cash flow will be how you make money.
You can also watch this video. Hope it helps. czcams.com/video/kyCRtQQaiTA/video.html
Hi, please advise what i should study next year to start a career in property? Your videos are so inspiring Thank You ❤
Don't study. Use that money to buy property.
This is a big decision. I wish I could help you with this. Some advice would be to talk to some wealthy people that you know. Surround yourself with like-minded people.
Work on your financial literacy asap and focus on saving and building good credit and healthy savings and investing habits.
Invest in your own growth.
No matter what you study, when you havee these fundamentals in place you will reachsuccesss.
I would look at studying for high demand high income jobs. Attorney, CA, engineer etc.
@@louisreynhardtActuaries if you are good with math and hardworking.
interesting strategy, what are your charges for the membership, would like more info on this strategy
Thanks a lot, my friend. You can click on "join" underneath any of my videos to see the different options. Otherwise, feel free to send me an email at louisreynhardt@gmail.com to book a one on one or get early access to my courses.
Great video! How does refinancing affect your credit score and interest rate on the second bond?
It affects your affordability, not your credibility. They will asess your financial position before granting the refinance. But combining this with the right structures makes it more than possible.
Please consider my property course as it holds a lot of value and important information. This is the best way to learn all the necessary skills to be a successful investor.There is also a mentoring option available which is the most popular option.
To secure your spot, simply click payhip.com/LouisReynhardt and follow the easy registration processor.
Please talk about your risk management if tenants don't pay their rent. Or do you put your own money aside to cover for that?
Great question, I have a reserve fund for each property I own. Preferably 10% of the properties worth. You can also use refinanced money to cover shortfalls 💪🏻
Please could you advise where can I see a potential tenants credit score?
You can use TPN to draw a report on a tenant .
@@louisreynhardt thanks for your response. Have had bad experiences in the past with tenants.
Listen... I want to do this. What kind of business are the properties under?
It depends, I prefer using trusts for my properties. Search my name and the word " trust" to see relevant videos about this. Hope it helps.
Hi Louis. How does the Brrrr method affect your monthly cash flow?
It depends on how you use it. When you spend it wisely to buy a new cash flow generating property, then there won't be any problems. It takes a bit of skill to understand it at first, but the idea would be to only use the refinanced money to grow your portfolio.
Hii , I hope that you're good... how much do you charge for mentorship ❤
I need a mentor
Im doing fantastic, thanks for watching. You can pop me an email at louisreynhardt@gmail.com if you want to dind out more 🙌🏻😎
How much properties do you have?
I prefer not to disclose this my friend. I do, however, try to purchase at least 2 a year
My market valuation lecturer taught me this is in my 4th year of Quantity Surveying but I've yet to put it to use....bespite seeing his wealth. 😢
Thanks for sharing.
Practical knowledge theory. Doing is always harder but its the best way to learn.
@louisreynhardt how long do you wait before refinancing?
Great question. It depends on my specific goals for the year, but a minimum of 6 months wait before I attempt it on a property
@@louisreynhardt ok i see, so a max of 2 properties/yr is possible, all things being equal? I know some people recommend waiting for 2yrs which is not going to work for me ....
Wow great strategy, I'll love to learn more
Pop me an email at louisreynhardt@gmail.com if you need more info 😁💪🏻
I really still don’t get it but I want to understand and implement
Check out my refinancing video on the property playlist. That shouls help.
Great video - i am looking for a 1or 2 bed flat near Universitas Hospital in Bloem . Which area do you suggest that are close ?
For investment or to live in ?
@@louisreynhardt I have a 5 year work contract at Universitas Hospital - so I can live in it and then sell it thereafter. Budget about R500k . Thanks
@raymaharaj3555 The nicest area is probably Universitas Ridge or maybe even Park West. Universitas is full of students and not necessarily a very quiet neighborhood. It als9 depends on how close you want to live.
Thank you
Hi Louis, can you explain what you mean with "registering" the property for R450 000? Do you mean register the bond for R450 000? If so, how does that work? Do you simply tell the bank you want to loan R300k but to register the bond for 450k instead?
You said this part was important for the strategy to work. Why?
So simply put, you register the bond for a higher amount. You do this with your banker or bond originator before the bond registers. This is simply something they change before registration ( your registration cost will be based on your registration amount)
This will give you access to the additional funds later on with the refinancing. If you did not register the bond at a higher amount, you will have to pay registration costs again. We want to avoid this problem. Hope you understand. Thanks for watching
Hi Louis,
Which areas in bloem do you recommend for investmen?
Really depends on your strategy ?
There are many good areas in Bloem
Would you say Hilton is a good area for rental?@@louisreynhardt
I dont understand what is 'refinance'
Simply put, its the replacement of an existing debt by means of another debt with terms and/or conditions that are more favorable. In other words, debt refinancing refers to the replacement of existing debt with new debt.
If you still dont understand check this video out czcams.com/video/kyCRtQQaiTA/video.htmlsi=2sN0XDZ8X49EilnE
How much did the renovation cost?
It was around R25k for everything
A property for R400 000???
Almost unheard of
They are available all over SA
After long can you go back to the bank to ask them to refinance?
Yes, you can go back after at least 6 months if you have equity available or if you have forced appreciation. 🙌🏻😎
What is the right price bracket to invest in 2023
Very difficult question to answer.
Depends on where you live, how much you earn, the strategy you want to use and your risk appetite.
I try to focus the majority of my portfolio on high demand lower to mid invome properties, which caters to a large percentage of South africans. Some people might like high value properties in CT or development properties. What works for me wont necesary work for everyone.
I am starting to like @louisreynhardt. Hulle weet nie wat jy weet nie. Haha.
Lekker brother 🤣💪🏻💪🏻
How much did the average rehab cost for the 2 flats?
On average around R25 000 🙌🏻😎
@@louisreynhardt not to bad for how it turned out🔥
@clecsty7508 thanks my friend appreciate it 🙏🏻 🙌🏻
WOW!!!!!!!!!!!!!!!
💪🏻💪🏻💪🏻
Do you run these flips in your personal capacity or in an entity?
It's not flips, I do them in separate entities and not in my own name.
Thanks for watching. 💪🏻
There is a dividend tax and there has been since 2010
Thanks, not sure how this is applicable?
Are these studio apartments?
Yes, one is a studio and the other one was a one bedroom 😎🙌🏻
Problem is you still sit with the refinanced debt
Good point. It might seem like a problem to you, but when used correctly to buy more cash flow properties, it's not a problem but an advantage . Your next property needs to cash flow enough to cover the extra debt. Then you can rince and repeat
....BRRR
Not sure where you can find a low priced property discounted to R300k these days unless you in a location or council flats and the risk of high risk tenants losing their jobs or thugs not paying rent or moving out🙈
🤣 They are not always so easy to find. But if you know how to find valuie its definitely possible. These properties mentioned are in nice areas with good growth and great management. But it's not the case everywhere in SA. That why you need to know your market.Thanks for watching 😁
I am asking the same. In SA you dont get places for R400k
How are you actually making a profit? It sounds like taking on more and more credit?
Thats correct, but you use the debt to buy more assets that produce cash flow that you borrow on and buy more assets that produces more cash flow. Hope it makes sense 🤣
i also want to start flipping
This is not really flipping because I still own the asset, and there are no tax disadvantages. But it has similar aspects to flipping 😁👊🏻
Not even Robert Kiyosaki has ever explained the concept of refinancing and equity so clearly to me. Very valuable info Louis.👍
Appreciate the comment my friend. Thanks for supporting the channel 💪🏻 all the best
Hi Louis. I am very intrigued by this strategy. One or two things that still doesn't make sense to me: Let's say you got access to the R150k equity from the first property as a further loan, and the second property you want to buy costs R500k. That R150k you got from the first property is in theory only enough to cover transfer registration and rehab costs, right? (Maybe there is a tiny bit left over as a small deposit). You then still need to qualify for a loan to actually purchase the next property of R500k. How can you ensure you are actually able to finance the secons property? Yes you have R150k to acquire and fix up the next property, but I don't understand how you would necessarily qualify for that next one - especially if your income hasn't grown, and thus you can't get pre-approved for another loan.
Secondly, if you get R150k equity, technically it is your net worth. If you refinance that, you take that as a loan and now you have to pay interest on your own money. Isn't it better to sell the property and liquidate that equity, although it is taxable.
I hope you can give me some more clarity on this. Thanks!
Thanks for watching
Great question . Unfortunately, refinancing is not an endless way to get financing, but that is why it's important to invest in cash flow possitve properties that can increase your affordability and not decrease it. The equity will be used for transfers, etc, but above that, you should never use all your equity. You should atleast have some left (it also helps to not use up your affordability with the first property you purchase) While using your equity, you should also focus on increasing your income in your own name. This, combined with the right structures, will help you buy much more properties than you normally would. I dont sell properties because that defeats the point of building generational wealth. Flipping or selling forms part of income and not investments. Hope this helps
@@louisreynhardt That makes perfect sense. Thank you!
"I look for properties where the seller desperately needs the money, then I chop 25% of the offer" ya..... that's really "HELPING the seller" wow... talk about getting rich off the backs of the poor.
It's called running a business mate.
The seller doesn't have to accept, and no one is forced into the offer. You can go ahead and make full price offers on your properties if you want to.
Thank you for passing down the wisdom,@MP.T ...Pta
Huge pleasure. Thanks for watching 😁👊🏻🙏🏻
Man am fan of your work😀👌I need clarity on refinancing and is it a great investment to buy vacant land?
Thanks my friend. Vacant land can be a good investment depending on your plans. I dont focus on land only. It's great for livestock, but I'd rather rent the land
Hi Louis. i registered and send you an email.
Welcome to the community. Can you perhaps resend your email ? I can't seem to find it. I might have missed it.