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 79: Growing a property investment to own two residential blocks of flats
Episode 78: How to grow your property portfolio using multiple investment strategies
Bonus Episode: Why families have the same money patterns
Episode 77: Building a boutique hotel chain on the African continent
Bonus Episode: Real Estate investing trends on the African continent
Episode 76: Looking at the Spatial Planning and Land Use Management Act
Episode 75: How to buy 13 properties in one year without putting any money down
Episode 74: How to invest in property in different countries as you travel the world
Episode 73: Diversifying risk by investing in property in the Stock Exchange, South Africa & China
Episode 72: Why you need a Structural Civil Engineer in your real estate tribe
Episode 71: How to create different cash cycles as a property developer
Episode 70: How to grow your real estate portfolio using Airbnb in South Africa
Episode 69: The A to Z on buying properties at auction
Episode 68: Interior Architecture & how Covid is changing building trends
Episode 67: Using shipping container homes to solve the housing crisis and build a property portfolio
Episode 66: The New Year 2021 Episode - Taking a holistic approach to real estate investing
Episode 65: The Christmas 2020 Episode
Episode 64: How to get funding for commercial property in South Africa
Episode 63: How to profit from multi-let properties that cost less than R1 million (US$65,772)
Episode 62: The importance of a town planner and zoning in real estate investing
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