In today’s podcast episode, we talk to Moloko Makgele, founder of Zest Property Investment Development and a fund manager at Absa for the last 8 years.
Moloko has an Accounting degree, post-grad in risk Management and an MBA from Mancosa.
He has been an entrepreneur for years and has tried multiple businesses until he decided he needed something that can create a proper stable income, which is how he decided on property.
In 2018 he partnered with his cousins to buy their first investment property cash in Polokwane. The property was an old RDP house in a 400-meter yard. The plan was to build rooms on the property.
They didn't do anything with the property for 10 months and he noticed that he was the one taking care of the property. He felt like he was the one pulling everyone so he offered to buy out his cousins for R120, 000.
At about the same time, his father went on pension in early 2019, so he borrowed money from his father to convert the property (in the podcast he shares how to talk about money with your family) and demolished the actual house and built 10 units.
In the podcast, he shares the challenges of building a house in a separate province and how he had to change builders 3 times and how it took him 6 - 7 months to build the units, vs the 2 to 3 months he had planned.
He finished building the units in March 2020, for R800,000 (US$56,380) and they were fully occupied within a month, renting at R2300 (US$162) per unit.
He then bought a second property in Kempton Park, using money he had borrowed from friends after renegotiating the terms of the loan with his dad.
He bought a house, rezoned the house and partitioned it into 11 one-bedroom units, added wifi to the development.
This is such a great episode because we go in-depth on discussing money with family and friends.
Click play to listen to this episode and please share your feedback in the comments below.
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 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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