No Money Down-Property Investor

You have gone through the bank account and the financial products you have purchased so far.  Does it feel hopeless? Do you have a plan to get a side-hustle? Not possible right now.

If you are wondering whether to wait until you have extra cash or you should clear ALL debt before you begin investing in property. This post is meant to awaken your senses to a new way of thinking. Start thinking out of the box. Where you are right now- could actually be the best place.

I thought let me unpack the strategies to eKasi and the suburbs we all come from. That’s what I know.

What this article will leave you with is: Inspired to read/ listen to podcasts/ YouTube videos/ Networks. We obviously find our stories from our friends and relatives, mentors. Do not let them scare you!

Is No Money Down even POSSIBLE? Is it a Scam, a Secret or a Fallacy? Let us look at the strategies right under our nose. YOUR NEW WORD is get Creative!

Firstly-What Property investing is NOT:

• Not black and white;
• not a button that can be pressed
• not an ATM machine that shoots out cash

Property Investing is a right combination of numbers, it is a complex multi-dimensional maze

Property investing requires more than one blogpost, workbook and a seminar.

I cannot emphasize this point enough. Creativity must be preceded by a bit of personal (inner) work. Working through your fears, doubt and challenges. This is why we network and speak to other people or even engage a coach to hold our hand. And most importantly we read or listen to material that builds out confidence.

1.    House-hacking

I believe we make too much ado about our “privacy”. If you link the strategy to your WHY …see if this strategy is not worth your while.

• If you are young, single with no children. You can begin living “rent-free”. Why do you need a 3-bedroomed apartment all to yourself?
• The 2-room and garage at home. The one-room used as a store-room? Install a shower and toilet…Boom you have a bachelor for another youngster, start collecting rent.
• The maid’s quarters at the back has been standing empty since you went to varsity at your parent’s house or the cottage that’s standing unattended for two years now you are sitting on gold! That could fetch R3500- R7500 and start making additional income.

• SHARE a 3-bedroom apartment with another young person, who like you- are looking to save some pennies for their goal. Pick your live-in partner carefully. I know someone that ended up renting all three bedrooms he ended up on the couch in the lounge- that is a bit extreme, but he was so determined to make R10K per month, he had goals.

2.    Re-finance

A strategy is as old as the world, but no one tells us about it. Most of us are unknowingly sitting on gold.

• Parents are late, you were left with the township property. Does it have no mortgage? You are sitting on gold, like a leper sitting on a box full of gold coins. Get the house evaluated and you can borrow money against the equity that’s in that house.
• The 2-bedroom apartment you bought 3 years ago- check how much equity it has so far. That 50-60K can deposit an investment apartment- if you can afford it.
• You have a house you have lived in for 10-years, there is equity in that mortgage. Borrow some money off it to add an apartment on the house? Or use the equity to purchase an apartment for rental

3.    Property Stokvel

Most of us watched our parents/ aunts participate in stokvels to pay to buy flat-screen TVs or pay our university fees. Same principle! This time- we invest in an asset. Something that can be used

Join a Property stokvel: re-divert your payments from an endowment policy to invest in property instead. You can participate from as little as R1000 per month. Yes, those with R100 000 also participate in theses stokvels. Don’t let this deter your dream.

4.    Short-term Rental.

Air BnB your current apartment in a secure estate over the holidays.

• Clarify with the landlord if you can “sub-lease” your second room. If you clarify your strategy with the landlord and give them assurance on how you will keep the place clean and secure. Tidy up the place and List it
• You can even lease to a student if you live around a university/ college

5.    No Money Down-Creative Financing

Creative financing requires you to think out of the box and to begin getting comfortable with the “unknown”.

Education is key. This strategy requires relation shipping and partnering with other creative investors with cash. Your homework here is to bring “value” to every deal.

Determine what value you are bringing to the table. Is it any of this:

• Be the runner- find the deals. That means you “drive/ walk around” and find houses for sale or for refurbishment
• Use the skill you have: carpenter/ electrician/ plumber- bring your skill to the deal and start learning how properties are flipped/ refurbished

As you can see, all the above strategies have not asked you for money in your bank. What is required is a combination of Sacrifice. Education. Research. Networking. A Mentor.

Again- one blogpost can never be enough for an investor to make a decision, be sure to dig deeper into each strategy before you invest.