Showing you how to become a Property Millionaire through Property Investing

Saving money on your mortgage payments getting the best Interest rates at the banks.

Table of Contents

Freedom of choice for you & your family

~ Introduction

~ Choice No#1 - Save money now, or Save money later

~ Strategy 1: 30 in 20

~ Strategy 2: Horses, Courses & The Jockey

~Getting the bank to lower your interest rate

~ My Story

~ Killer Offers for you

~ Additional Guides for You

Real estate is especially rich with opportunities to grow your money – BY USING THE BANK’S MONEY!

And by Bank I mean any institution or person that is willing to give me money

I want to help create a more prosperous world in which as many people as possible empower their personal growth.

That’s why I’m passionate about sharing with people like you to become well-to-do property investors.

INTRODUCTION

I believe in a world where continuous learning and personal growth are shared, so that everyone has the opportunity to unlock their full potential

For me, this started with looking for a way to make more money, not only in my personal life, but also in my investment portfolio.

I wanted to travel, to experience and to learn.

But as I had already capped what I could earn, or so I thought,

the next best thing was to cut costs.

In the past I would ask for a lower interest rate, and if they said no,

I just took what the bank gave me. And that was it.

But this frustrated me and led me to discover

The horses, The courses and The jockey

Of Bank Lending

In short, Banks play by a set of rules. And If you know the rules, you can win.

And this works like a charm.

But, From my own experience & from helping others,

I know that real estate investing can seem intricate & bewildering,

and not everybody knows their rules. I certainly didn't when I first started

But over time I learnt simple ways to break it down & make it easy.

And this this guide is going to cover just that:

~ What to change

~ Why to change it

~ how to change it

But, before we begin, you'll need to think about the following question

Do You Want Your Savings Now?

Do You Want Your Savings Later?

The goal I personally strive for is savings now.

But we are not all the same

When I coach people, we go through a series of profile tests.

partly because I need to know how to get the best out of you,

but mostly, to help you, make your own decisions.

Some people are Accumulators, and the Accumulator is
the safest of the profiles, relying on a system of small steps to achieve success.

Warren Buffet is one such accumulator

In other words they prefer to accumulate over time .. be that for savings or earnings.

They will more than likely choose savings at the end.

Ps: How do accumulator's buy property... one solid brick and mortar at a time.

Others are like me, Star profiles.

We are quick on our feet, make quick decisions, and the more daring of the wealth profiles

Opera Winfrey is a famous Star Profile.

But, we love to spend money. Not in 30 years. Not in 10. But now.

So we will more than likely choose the short terms savings each time

PS: How do Stars buy property ... Big, flashy, bold and we share it with the world!

This first strategy then, is more inclined towards those who are more cautious

and like building wealth over time

Strategy 1: 30 in 20

Take a 30 year loan, and pay it off at the 20 year monthly installment rate

Looking into the table below for the 30 year option, you can see that whilst you pay less monthly,

Over the long term, you are paying back over R3.6 million Rand. Not ideal

On the 20 year option, you are paying a higher monthly amount,

over the long term, its dropped to R2.6M Rand.

That's a great long term savings of R1M Rand

As they say though, "But wait, there is more"

If I take out a 20 year mortgage and pay it off at the 20 year monthly installment amount,

I still pay the higher monthly installment amount,

But the overall repayment has lowered to R2.4M Rand

A further savings of R200K on top of the R1M Rand savings

Note that we did nothing major here, we just structured the loan to suit our needs.

A further benefit of this if you have an access bond, is that you will be able to access the additional payments you made, if that rainy day ever comes. .

I go into the calculation of this and give you the excel doc in my mini course, but the key takeaway is...

I Take a 30 year mortgage and pay it off in 20 years.

To succeed, you have to understand Their rules.

Strategy 2: The Horse, The Course & The Jockey

This is not a one stop solution, and nor is procedure that can be followed verbatim.

Instead, its the sum of the parts which together, make up the overall decision.

As such, getting all three right will raise your chances for a low interest rate and a 100% mortgage

Firstly, the Horse

These are the houses and for this you will need to answer a few questions and get a few reports.

Banks lend money, which is risky, and as such they increase the interest rate to insure that risk. But what is risky for them?

Over the years I've seen three broad based criteria being applied

1 - How much is it worth, versus how much are you lending?

This is the debt coverage ratio

The higher the ratio, the higher the interest rate will be.

So when I bought a property in Pretoria worth R1.65 Million Rand,

and I only paid R1.1 Million for it, the banks looked at this favorably and gave me a 100% Mortgage, at prime less 1.5%!

Most people are paying prime plus 1.5% if not more

The reason for that is, If I didn't pay the mortgage, and they need to enter the distressed properties route (Urgent Sale; Bank assisted; Post assisted; Sale in Execution; Property in possession *),

their is a good chance they can sell the property and not loose money on it.

If you buy a property worth R1.65M and need a R1.65M mortgage,

your chances of a 100% mortgage at an optimal interest rate is very slim indeed.

The risk for the bank is just too high.

For properties under R2M Rand, banks tend to run a "Desktop evaluation" using a tool called Lightstone, or CMA, or TPN.

I personally favor Lightstone which you can access here:

https://www.lightstoneproperty.co.za/OnlinePropertyReports.aspx

For properties Currently over R2M, they will most likely want to send a property evaluator out to determine the value.

The higher the mortgage, the higher the risk.

To find the property value, you can also run a desktop evaluation and can run your own Lightstone report to compare the Lightstone estimated value, with the asking price.

If Lightstone values the property more than the asking price,

your off to a good start.

If Lightstone values the property for less than the asking price, your either being taken advantage of by a greedy seller, or the neighborhood is not as good as it used to be.

Which leads us to the next point...

2 - What area is it in

The more secure the area, the lower the risk.

The more up and coming the area, the lower the risk

Any sudden change in the security posture and their risk goes up,

as does your interest payment.

In one instance we secured a great property in Johannesburg

at R300K under value

But when we pulled the crime stats we noticed an uptick in burglaries

and break in's so we took a drive around the neighborhood.

Less than 500m down the one road was a dead end. All seamed fine but we took a walk into the veld, over a stream and some bushy areas, and right into a squatter camp that had rapidly grown.

Never underestimate the power of driving 1.5km in either direction of your property! Estate agents will not, and do not tell you everything, neither will the owner. Its just the way it is.

Banks however have their finger on the pulse and know where illegal squatting is happening as this devalues property...

meaning they might not get repaid.

Meaning your less likely to get 100% mortgage and a good interest rate.

Yo can get these crime reports at https://www.crimestatssa.com/

3 - What condition is the house in?

- Property inspectors report

Next up, the Course

Courses are the entities in which you you buy a property in, of which there are three:

1 - Personal name

2 - A Company name

3 - In a Trust

The pro's and con's of each of these, when to use them, why we use them etc. are beyond the scope of this guide

In fact, it's a mini course all on its own (Deservedly so) and takes about two hours to watch and understand.

But, for simplicities sake ...

~ I use my personal name when flipping

~ A company when partnering or running an Airbnb

~ a Trust when Its a buy2Rent, or via an ISA... and its only me buying.

When buying in the name of an entity such as a PTY or Trust,

banks see you as a more professional investor.

This is due in part, that PTY's and Trust have Annual financial statements to produce

And annual financial statements require an auditor to check.

Entities protect me, they protect the asset, and this gives the bank more comfort of course

Do not be fooled when people say

"If you buy in a company or a trust you wont get good rates

or you wont get 100% bond"

I've received 100% bonds and great interest rates for both PTY's and Trusts.

And last, but certainly not least ... The Jockey

That's you.

You have to be credit worthy to get great rates

transunion.co.za

My Story

“I believe in a world where continuous learning and personal growth are shared, so that everyone has the opportunity to unlock their full potential”

This is what I believe in, This is what drives me, and this is what makes me feel alive. Its never been about the money for me, its always been about the learning and the sharing. The only reason the money became important is because I wanted to go and learn more, but those experiences required travel to Los Angeles, London, Dubai, Thailand and Fiji to name but a few. Expensive places indeed.

And so, ever since reading Rich Dad Poor Dad, I’ve been following property investing as a way to level up my financial life and build my wealth. Wealth in knowledge and wealth in finances. And today, I can say I love looking for ways to share that wealth through people like you.

If you’re ready to level up your life, Finances or your current Property Portfolio with me, then the section below called "Offers" is just for you. I'm also on social media and regularly upload to my Youtube channel & website blog.

I'm looking forward to sharing this journey alongside you so we can all reach financial independence together.

Committed to the call of adventure

+ living life to the ABSOLUTE full!

Michael enjoys white-water kayaking

& body boarding

+ He is a Master Scuba diver.

He is seriously committed to animal welfare & protecting wildlife.

and loves his Dogs deeply

As adventure traveler he has visited 42 countries on 5 continents seeking personal growth and experiences.

OFFERS

I have a few ways I can help you to get started & growing your property portfolio immediately

AMA Call

In my Ask Me Anything (AMA) calls, you can ask me anything you would like me to coach you on. It's a one time only, deeply discounted opportunity for you to get started, get unstuck or get growing

1 Month Of Coaching

Your 1 month get started coaching series

4 calls in 4 weeks

Free access to my Mini courses

3 Months Platinum Coaching

Enjoy the benefits of a Coaching Programme made just for you. , that entails a powerful combination of formal coaching sessions, and my number on speed dial when you are in urgent need of advice and support