Meet Michael Bowen
A Sample of our Properties
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Michael Bowen invests into properties that meet 2 or more of the following criteria rated from highest to lowest importance
- Below market value
- Motivated seller – Emigrating, Divorcing, Financial challenges, backlog of rates and taxes, in need of a quick sale etc
- Cash flow positive from day 1 after ALL costs
- Distressed property
- Preferred price bracket R1M to R1.7M
2 bed 1 bath 80m2 apartment located within 2 minutes walk of trams and trains.
- Monthly costs: E650
- Monthly rental E1250
- Monthly Profit E600
- Equity E100 000
Purchased in 2006, from a couple emigrating from Holland to the UK, the couple had already left the country and with the property standing empty, was not selling.
Bought at 12% below market value, This property has doubled in value over the past 14 years, and brings in roughly E600 pm cash flow after all expenses.
This property is located on the edge of Amsterdam, Netherlands, and is targeted at people looking to share in order to maximize the rental returns.
- Purchase price R165 000
- Sale price R285 000
- Selling costs and concessions R25 000
- Profit R95 000
A rather unfortunate story with a great ending for all. The distressed seller had reached out as the bank was about to move into repossessing the last of his properties. He had bought when times were great, and from an agent who oversold the potential dream. He bought overpriced hoping for a surge in the market which never came. When he needed to sell, he was unable to get even half the value he paid and was scraping together as much as he could.
ThE bank had already started the reposession process and a sheriff auction was days away. We scraped together as much cash as we could in 2 days, which turned out to me R165 000 in cash that we could gather from credit cards and loans.
Bought from a distressed seller for R165 000, this vacant land was sold via an instalment sale to a couple looking to retire from the city, and work remotely for 3 days per week.
With no credit history or a lump sum of cash, the new buyers were unable to get a loan and the land was sold via an instalment sale that concluded within 18 months.
Instalment sales are where we acted as the bank and they paid us back a monthly amount.
- Purchase Price R445 000 – 20% BMV
- Refurb R75 000
- Selling price R685 000
- Selling costs 65 000
- Profit R100 000
3 sets of existing tenants lived in this 1 bedroom 39m2 property, each set taking 8-hour sleeping shifts and not wanting to move anywhere.
We came in, offered the tenants money to move out, which they accepted, and took ownership of a cockroach-infested unit.
Within 6 weeks, we had ripped out the entire kitchen and bathroom, replaced the rotting windows, tore up carpets, replaced with screed flooring and finally gave it a new coat of paint.
2 weeks after the refurb, the property was rented as cash flow positive.
We waited till after winter and began marketing for investors to buy a completed unit with tenants.
Sold with 2 months at a R100 000 profit
Bought directly from a developer at 15% BMV, this urban professional hub sits between the new harbour arch redevelopment and the new District 6 redevelopment.
Currently sitting on cash flow neutral, this unit was refinanced to release equity for a JHB buy-refurb-rent investment. Upon completion of the JHB property, the funds will be returned and will once again return cash flow positive.
Click here to Rent
A beautiful home in Pretoria where we set out to solve someone’s problem!
Click below and watch as I unpack her story
- Purchase price R1.1m
- Market Value R1.65m
- Market value discount <30%
- Equity R500 000
- Monthly costs: R13 500
- Monthly rental R16 500
- Monthly Profit R3000
Click here to watch Sibongile’s story
A full refurb after termites decimated this property.Anything wooden need to go!
Bought 50% below market value, we spent nearly double to gut this entire property and give it a complete overall!
- Monthly costs: R12 000
- Monthly rentalS R19 000
- Monthly Profit R8000
- Equity R100 000
Bought initially as a commune, the plan was to rent out each room, whilst we rezoned to Res3, and then added more units on to maximise the space and rental income.
Not all plans go as planned though which is why its important to stick to the buying criteria of having two exit strategies.
Black Swan events happen and this is an example of just that. During the first 6 months of COVID, the room rental market in this area took a sharp decline. Whilst we bought right and could take on the reduced rentals, the result would have been too tight to maintain long term. With no clear timeline for COVID to come to an end, we needed to act on the exit strategy.
We pivoted, sought out other investors, and found a developer looking for a unit he could demolish and rebuild entirely. We sold this property for R50 000 profit, with none of our own money down and only 10 hours of our own time in it.
The importance of buying right is a lesson for all investors to pay attention to.
Meet Michael Bowen
Property Sourcing Partnerships
Michael Bowen invests into partnerships with investors looking to grow a property investing business, with partners requiring 2 or more of the following criteria rated from highest to lowest importance
- Action takers and have time to invest in the success of the business
- Have a clean credit record and mortgage affordability
- Educated in Property investing
- Experienced in Property investing
In partnership with Nelle Evert and Tamryn Selway, we are sourcing and securing property in Cape Town
In partnership with Heinrich and Melissa Killian, we are sourcing and securing property in Bloemfontein.
Heinrich and Melissa are passionate about real estate and as a property owner of numerous student units in Bloemfontein understands the unique Bloemfontein student accommodation market.
Sitting at a braai one evening I heard friend of a friend talk about how he bought his first property. The conversation was short as I knew relatively little about property investing at that time. This friend told me about the book Rich dad, Poor dad by Robert Kiyosaki, and reading this book would eventually have a profound effect on my life. This book kick-started my curiosity into property, investing and my eagerness to learn more and find out all it has to offer. This burning passion for property together with the passion for helping people (I have a Bachelors degree of Education) is who I am and why I became involved in Bloem Homes. My property journey started that evening at the braai in 2016 as I bought my first property soon after and have never looked back since.
I love working with people and truly feel I can make a difference in people’s lives. Recently I received a picture from a student, renting from me, which showed how bad her conditions are at home and she thanked me for the accommodation I gave her. That’s what it is about for me. I wasn’t born with the proverbial silver spoon and started off all my projects with good old fashioned hard work. This is what Bloem Homes affords me; the opportunity to help people while broadening my scope and knowledge of investing in property
In partnership with Ralph Hollenstein, we are sourcing and securing property in Johannesburg
In partnership with Nick Koumpan, we are sourcing and securing property in Gqeberha formerly Port Elizabeth
We are actively looking to partner with investors across South Africa
Meet Michael Bowen
Michael Bowen invests into partnerships with striving entrepreneurs who have good business ideas in the property sector