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2 rental properties and counting.

lunga ngcobo

Contributor
Read Millionaire Fastlane
Mar 29, 2019
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Hi all

Ok i know most entrepreneurs have negative feedback about real estate investing because its Very slow. Ok but look at my situation.

After my parents passed i decide to build singe bedrooms studio apartments and i managed to accumulate to 16 units. Keep in mind, the property is paid up(no mortgages!)

The profits look something like this:
$150 X 16 = $2400 (took me 3 years to build and my capital was under $2000)

My grand ma passed some time ago and left behind a tiny house and i decide to also build rentals on the property (no mortgage!)

The profits on the property look like this:
$90 x 14 = $1260 (took me 16 months to build and i built those from the money i make at my first property)

Keep in mind this in South African townships. Well a township are not rural areas but are places situated next to towns and are also not suburb.

The average price on buying vacant land in these areas is around $4000; and can occupy up to 20 studio apartment units. each unit will cost about $1200 to build(including labor)..

(no taxes required, just power and water payments) this is due to the property laws not being so strict in township areas (no joke)...

This is a an almost passive business and works well for me the problem is Its slow and boring to scale up. There are a number of times where i went to start other businesses that i thought would scale up much faster but i ended back to investing in these rentals.

My question is ... Could this be my fastlane ??
 

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AgainstAllOdds

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Read Millionaire Fastlane
Speedway Pass
Dec 26, 2014
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Yeah. This is your fastlane.

The average price on buying vacant land in these areas is around $4000; and can occupy up to 20 studio apartment units. each unit will cost about $1200 to build(including labor)..
Using these numbers, it costs you $1,400 total per unit.

At $90 profit per month, it will take you 16 months to pay off a unit.

That's an unheard of payoff rate in Western real estate.

Using your cashflow, this year you have 30 units total. Next year you can have 50, then 83, then 140, ... then in 7 years total from now, over 1,000 units ($1MM + in annual profit and growing).

If I was you, I'd be taking out loans. and putting everything I had into real estate.
 
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lunga ngcobo

lunga ngcobo

Contributor
Read Millionaire Fastlane
Mar 29, 2019
75
99
117
Yeah. This is your fastlane.



Using these numbers, it costs you $1,400 total per unit.

At $90 profit per month, it will take you 16 months to pay off a unit.

That's an unheard of payoff rate in Western real estate.

Using your cashflow, this year you have 30 units total. Next year you can have 50, then 83, then 140, ... then in 7 years total from now, over 1,000 units ($1MM + in annual profit and growing).

If I was you, I'd be taking out loans. and putting everything I had into real estate.
shittt!! Odds!!! ' what someone i know told me...

I mean seriously, after reading the millionaire fastlane i turned a blind eye on my retals and i though i could strike it rich on building a website just like MJ did but i realized that the internet now is so crowded that i would need alot of money to even be noticed.

If i had not derailed from my rental plan i would be much further by now...

anyways im back to my senses and i realize now that this here is a real opportunity to make an impact.

Thanks for the inspiring comment... real inspiring... :thumbsup: :thumbsup:
 

AgainstAllOdds

Legendary Contributor
EPIC CONTRIBUTOR
FASTLANE INSIDER
Read Millionaire Fastlane
Speedway Pass
Dec 26, 2014
1,938
11,431
2,426
27
Chicago, IL
shittt!! Odds!!! ' what someone i know told me...

I mean seriously, after reading the millionaire fastlane i turned a blind eye on my retals and i though i could strike it rich on building a website just like MJ did but i realized that the internet now is so crowded that i would need alot of money to even be noticed.

If i had not derailed from my rental plan i would be much further by now...

anyways im back to my senses and i realize now that this here is a real opportunity to make an impact.

Thanks for the inspiring comment... real inspiring... :thumbsup: :thumbsup:
  • Start your next real estate project ASAP. After that...
  • Go talk to banks to find out what you need for more loans to build faster.
  • Crunch the numbers from the bank and make sure it makes sense (that interest rates are fair)
  • Set up accounting practices or whatever the bank needs to give you loans easily.
  • Grow as fast as you can.
If local banks are not an option, then international investment is if your earnings are actually documented and legitimized by a third party. Also something to think about.

And no! You don't need to build a website. Modern entrepreneurs are tricked into thinking that the biggest money is to be made in a somehow "modern" way. That's not true. The easiest money is doing something that people have needed and will always need.
 
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lunga ngcobo

lunga ngcobo

Contributor
Read Millionaire Fastlane
Mar 29, 2019
75
99
117
  • Start your next real estate project ASAP. After that...
  • Go talk to banks to find out what you need for more loans to build faster.
  • Crunch the numbers from the bank and make sure it makes sense (that interest rates are fair)
  • Set up accounting practices or whatever the bank needs to give you loans easily.
  • Grow as fast as you can.
If local banks are not an option, then international investment is if your earnings are actually documented and legitimized by a third party. Also something to think about.

And no! You don't need to build a website. Modern entrepreneurs are tricked into thinking that the biggest money is to be made in a somehow "modern" way. That's not true. The easiest money is doing something that people have needed and will always need.
i will do exactly that. i think your idea is great. it will speed up my plans for sure.

thanks brother../ :thumbsup:
 
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lunga ngcobo

lunga ngcobo

Contributor
Read Millionaire Fastlane
Mar 29, 2019
75
99
117
$1260 to build a studio apartment? I just spent $1500 on double barn doors for my master ensuite and walk-in closet.

I'd be building those left and right...
lol, lets just say i know alot about building now coz when i started, i physically built the first ten units on my own. so i know how to cut costs. cutting off the unnecessary stuff that a builder would just to hike up the labor fees. Durban has warm climate so adding insulation and all that is cut out.

anyways these are my real numbers... no joke.

thanks anyways :thumbsup:
 
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lunga ngcobo

lunga ngcobo

Contributor
Read Millionaire Fastlane
Mar 29, 2019
75
99
117
  • Start your next real estate project ASAP. After that...
  • Go talk to banks to find out what you need for more loans to build faster.
  • Crunch the numbers from the bank and make sure it makes sense (that interest rates are fair)
  • Set up accounting practices or whatever the bank needs to give you loans easily.
  • Grow as fast as you can.
If local banks are not an option, then international investment is if your earnings are actually documented and legitimized by a third party. Also something to think about.

And no! You don't need to build a website. Modern entrepreneurs are tricked into thinking that the biggest money is to be made in a somehow "modern" way. That's not true. The easiest money is doing something that people have needed and will always need.
hey odds... ive been thinking about your advice lately. best idea ive heard in years. i realised how easy it will be to get finance from the bank once i own new vacant land. I'll use the land itself as colleteral ...

dude you have given me new hope... my fastlane road has become much clearer now. thanks buddy!!!:thumbsup::thumbsup:
 

Camaro68

Bronze Contributor
Mar 16, 2017
29
104
34
Twin Cities, MN
hey odds... ive been thinking about your advice lately. best idea ive heard in years. i realised how easy it will be to get finance from the bank once i own new vacant land. I'll use the land itself as colleteral ...

dude you have given me new hope... my fastlane road has become much clearer now. thanks buddy!!!:thumbsup::thumbsup:
How is it possible to build an apartment on $1200?!? I dont think I can build a garden shed for 1200. And I dont believe it is due to savings by not needing insulation...I've build 3 houses from scratch myself and all build very low compared to avg cost per sq ft and insulation was probably my cheapest line item. And that included me building all cabinets, kitchen counter tops etc. Do they have electrical/plumbing? What is the sq ft of each unit? Do you have to pull permits? I just cant fathom $1200 cost to build anything..I mean honestly I put together/built my buddies garden shed kit and he paid over a grand for it from Menards and its plain jane and barely 100 sq ft. Not calling you a liar, just cant fathom anything being that cheap. I'd be selling kidneys at those prices..
 

Bigguns50

Platinum Contributor
FASTLANE INSIDER
Summit Attendee
Speedway Pass
Feb 12, 2013
1,490
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Detroit suburbs, MI
Good work @lunga ngcobo ! Have you ever considered Airbnb some of your units ? I see there is demand there but I don't know about your exact location. For me, Airbnb is much better than renting. Keep it up !
 

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lunga ngcobo

lunga ngcobo

Contributor
Read Millionaire Fastlane
Mar 29, 2019
75
99
117
How is it possible to build an apartment on $1200?!? I dont think I can build a garden shed for 1200. And I dont believe it is due to savings by not needing insulation...I've build 3 houses from scratch myself and all build very low compared to avg cost per sq ft and insulation was probably my cheapest line item. And that included me building all cabinets, kitchen counter tops etc. Do they have electrical/plumbing? What is the sq ft of each unit? Do you have to pull permits? I just cant fathom $1200 cost to build anything..I mean honestly I put together/built my buddies garden shed kit and he paid over a grand for it from Menards and its plain jane and barely 100 sq ft. Not calling you a liar, just cant fathom anything being that cheap. I'd be selling kidneys at those prices..
yes these are real numbers camaron... these are just one room apartments with no built in furniture ... just two plug points lights and floor tiling. the bathrooms and toilets are communal. although id like to upgrage, my rentals are still pretty simple suitable for low paid employees...
 
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lunga ngcobo

lunga ngcobo

Contributor
Read Millionaire Fastlane
Mar 29, 2019
75
99
117
Good work @lunga ngcobo ! Have you ever considered Airbnb some of your units ? I see there is demand there but I don't know about your exact location. For me, Airbnb is much better than renting. Keep it up !
ok im guessing you mean converting my rentals into a BnB. sure i am considering but it will take alot of modification and i still dont have that type of cash. and 2nd these rental are still my primary source of income so what i'll do is try converting one by one when im more income stable. and by the way... one of these rentals is 15 drive to the international airport... great location huh

thanks for the comment Big :thumbsup:
 

SteveO

Legendary Contributor
EPIC CONTRIBUTOR
FASTLANE INSIDER
Summit Attendee
Speedway Pass
Jul 24, 2007
3,582
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Is there a market for upgraded units? Perhaps with private bathrooms and kitchens? I realize they cost more but if there is a need, your long term investment might have more stability.

Keep up the good work!
 

Bigguns50

Platinum Contributor
FASTLANE INSIDER
Summit Attendee
Speedway Pass
Feb 12, 2013
1,490
2,759
680
Detroit suburbs, MI
ok im guessing you mean converting my rentals into a BnB. sure i am considering but it will take alot of modification and i still dont have that type of cash. and 2nd these rental are still my primary source of income so what i'll do is try converting one by one when im more income stable. and by the way... one of these rentals is 15 drive to the international airport... great location huh

thanks for the comment Big :thumbsup:
Great ! From what i saw on Airbnb.com, you might get $15 - $20 a night. Don't know of that's good for you.
 

broswoodwork

Bronze Contributor
Read Millionaire Fastlane
I've Read UNSCRIPTED
Speedway Pass
Oct 16, 2015
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174
How is it possible to build an apartment on $1200?!? I dont think I can build a garden shed for 1200. And I dont believe it is due to savings by not needing insulation...I've build 3 houses from scratch myself and all build very low compared to avg cost per sq ft and insulation was probably my cheapest line item. And that included me building all cabinets, kitchen counter tops etc. Do they have electrical/plumbing? What is the sq ft of each unit? Do you have to pull permits? I just cant fathom $1200 cost to build anything..I mean honestly I put together/built my buddies garden shed kit and he paid over a grand for it from Menards and its plain jane and barely 100 sq ft. Not calling you a liar, just cant fathom anything being that cheap. I'd be selling kidneys at those prices..
He's working in South African townships. The needs are very basic out there.

@lunga ngcobo
Congratulations on finding your system! I know you were considering moving for opportunity, so it's especially awesome to see you find a fastlane right where you are and helping those nearby who need it the most.
 

WJK

Gold Contributor
Speedway Pass
Oct 9, 2017
725
1,604
463
Nikiski, Alaska
Hi all

Ok i know most entrepreneurs have negative feedback about real estate investing because its Very slow. Ok but look at my situation.

After my parents passed i decide to build singe bedrooms studio apartments and i managed to accumulate to 16 units. Keep in mind, the property is paid up(no mortgages!)

The profits look something like this:
$150 X 16 = $2400 (took me 3 years to build and my capital was under $2000)

My grand ma passed some time ago and left behind a tiny house and i decide to also build rentals on the property (no mortgage!)

The profits on the property look like this:
$90 x 14 = $1260 (took me 16 months to build and i built those from the money i make at my first property)

Keep in mind this in South African townships. Well a township are not rural areas but are places situated next to towns and are also not suburb.

The average price on buying vacant land in these areas is around $4000; and can occupy up to 20 studio apartment units. each unit will cost about $1200 to build(including labor)..

(no taxes required, just power and water payments) this is due to the property laws not being so strict in township areas (no joke)...

This is a an almost passive business and works well for me the problem is Its slow and boring to scale up. There are a number of times where i went to start other businesses that i thought would scale up much faster but i ended back to investing in these rentals.

My question is ... Could this be my fastlane ??
Yes, it is a "slow and boring" way to build -- BUT, your plan will stick. Most people lose their fortune twice before they end up keeping it the third time they build it. Why not be the exception and keep it the first time! You'll get there a lot faster this way than most of the "cool guys" around you. You can spend your time taking care of your properties and planning your next project.

Being a landlord is a lot of humble work. I regularly show up and mow the lawns, pick up the trash and plant the flowers on Sunday mornings and during long summer evenings when I know my tenants will be home. I wave at them as I work. Sometimes I sit on their porches and talk with them for a while. Next month I'll be changing furnace filters and serving on-demand water heaters. It's my excuse for going into each one of my rental units to do my bi-annual inspection of the interiors. Yes, I can hire someone to do this work, but it's my property. I am demonstrating pride of ownership and being a good example. If I don't care enough to show up, why should my tenants care about the condition of my property?
 
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lunga ngcobo

lunga ngcobo

Contributor
Read Millionaire Fastlane
Mar 29, 2019
75
99
117
Yes, it is a "slow and boring" way to build -- BUT, your plan will stick. Most people lose their fortune twice before they end up keeping it the third time they build it. Why not be the exception and keep it the first time! You'll get there a lot faster this way than most of the "cool guys" around you. You can spend your time taking care of your properties and planning your next project.

Being a landlord is a lot of humble work. I regularly show up and mow the lawns, pick up the trash and plant the flowers on Sunday mornings and during long summer evenings when I know my tenants will be home. I wave at them as I work. Sometimes I sit on their porches and talk with them for a while. Next month I'll be changing furnace filters and serving on-demand water heaters. It's my excuse for going into each one of my rental units to do my bi-annual inspection of the interiors. Yes, I can hire someone to do this work, but it's my property. I am demonstrating pride of ownership and being a good example. If I don't care enough to show up, why should my tenants care about the condition of my property?
wow... you life sounds alot similar to mine... i have to admit that at some point i thought i was going the wrong direction when i read the millionaire fast lane, now i feel im on the right track. thanks for the inspiring comment :thumbsup: :thumbsup: WJK.
 
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lunga ngcobo

lunga ngcobo

Contributor
Read Millionaire Fastlane
Mar 29, 2019
75
99
117
Is there a market for upgraded units? Perhaps with private bathrooms and kitchens? I realize they cost more but if there is a need, your long term investment might have more stability.

Keep up the good work!
yes there is a demand for those. alot people are doing them here and they cost double of what i charge per room.

i will upgrade as soon as i can afford to exit tanents while i upgrade. thanks :thumbsup::thumbsup:
 
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lunga ngcobo

lunga ngcobo

Contributor
Read Millionaire Fastlane
Mar 29, 2019
75
99
117
I would be really interested to see some pics of the finished units. Always interesting to see how they do it in different countrys @lunga ngcobo
yes i will post pics later on sauce. thanks
 

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lunga ngcobo

lunga ngcobo

Contributor
Read Millionaire Fastlane
Mar 29, 2019
75
99
117
He's working in South African townships. The needs are very basic out there.

@lunga ngcobo
Congratulations on finding your system! I know you were considering moving for opportunity, so it's especially awesome to see you find a fastlane right where you are and helping those nearby who need it the most.
thanks Bros. the fastlane forum people is what got me back to my senses... now i feel better about not moving. I would have lost alot more time if i made my move. now im more confindent then ever... thanks to the forum. :smile2::smile2:
 
Last edited:

SteveO

Legendary Contributor
EPIC CONTRIBUTOR
FASTLANE INSIDER
Summit Attendee
Speedway Pass
Jul 24, 2007
3,582
14,398
2,804
yes there is a demand for those. alot people are doing them here and they cost double of what i charge per room.

i will upgrade as soon as i can afford to exit tanents while i upgrade. thanks :thumbsup::thumbsup:
I wasn't thinking upgrade of existing. Was thinking more about the future ones you build.
 

WJK

Gold Contributor
Speedway Pass
Oct 9, 2017
725
1,604
463
Nikiski, Alaska
wow... you life sounds alot similar to mine... i have to admit that at some point i thought i was going the wrong direction when i read the millionaire fast lane, now i feel im on the right track. thanks for the inspiring comment :thumbsup: :thumbsup: WJK.
And I'll tell you the biggest secret... in the end, the "cool kids" -- who generally have nothing left out of all the stacks of money that they've made over the years -- will come up and say, "You are SO lucky!" They don't see nor acknowledge all those hours, which count up into years, of diligent hard work and planning. They think success is just a fluke that has fallen on our heads. Don't try to dispute them. Why would they want to perform carefully planned hard work for the long haul? It's not cool or sexy!
 

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