In this week’s episode, we talk to Isaac Masilela, the founder of Mziwethu. He was born on a farm in Mpumalanga, where his father was rendering his services for a place to stay. Watching his parents build houses with mud and farming to sell food, shaped him to be the entrepreneur he is today.
When he went to Secondary School, he went to live with his uncle who had structured houses; he decided then that he would build his parents a house. He became interested in housing and building houses.
In 1999, he had an opportunity to rent a 3 bedroom apartment to rent with friends, because he couldn't afford to pay for the house and his new car. This taught him that he could collaborate with people.
He bought his house in 2000, a few years after working for 3 years and took an R120,000 bond and invited his friends to stay with him and charged them rent so he ended up staying for free.
This sparked his interest in property and he decided to buy another property, which he rented out to someone. By 2004 he had 6 properties in his own name.
He then decided to buy a half complete house. He completed it and flipped it. He had no experience in building a house and had to register as a builder. He made a profit of about R300,000 on that house in 2 months. This motivated him to keep going in building houses and selling them.
In 2005, some guys approached him to start building some properties together and do property development and they ended up building 20 upmarket houses in Witbank. By the time they completed the development, the recession hit in 2008, so they ended up with R30 million in properties.
Because it was a recession, people were not qualifying for home loans, which encouraged him to pivot to lower-income housing and social housing, because people were qualifying for lower-priced properties.
His company, Mziwethu, focuses on the Gap Market, where people get grants from the government and housing subsidies from their employers. Fast forward to now where his company builds hundreds of houses per annum for the low-income market.
This is how Mziwethu ended up partnering with Sakhisizwe and Property Magicians Stokvel, which have invested a total of R3 million into their project in Secunda so far; we are now discussing how to work with Isaac to help his company generate R1 billion in revenue per month.
This is another incredible episode.
Tune in!
Episode 99: What happens when one discovers that property investing is not for you
Episode 98: Building a property portfolio using predominantly cash
Episode 97: Growing a property portfolio using different investment strategies
Episode 96: How to build an international property portfolio as an African
Episode 95: How Commercial Property Management is being changed by Covid
Episode 94: Life- changing lessons for building a successful property investment portfolio
Episode 93: How to ensure that the wealth you build through real estate is passed down from generation to generation
Episode 92: How to build 21 units in 2 years using other people‘s money
Episode 90: Formalizing & digitizing the back room market in South Africa
Episode 89: How to grow a property from scratch during the pandemic
Episode 88: How home staging can help you sell/rent your property faster
Episode 87: Identifying real estate investment opportunities in Nigeria
Episode 86: How to improve your credit score & grow your portfolio with bank money
Episode 85: How to accelerate the growth of your portfolio by buying properties cash
Episode 84: How to invest for appreciation and cashflow
Episode 83: Building a profitable portfolio of 12 short term rentals at the age of 23
Bonus Episode: How to own property in South Africa without Bank Funding
Episode 82: How to make money from flipping houses as a newbie property investor
Episode 81: Understanding additional costs in buying property & what makes a property a good buy
Episode 80: How the podcast has turned ordinary folk into Property Magicians - a chat with our listeners
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