The first person we have interviewed is property investor Andrew Walker, who is the founder of the South Africa Property Investment Network (Sapin). Sapin gave birth to the Investor of the Year Award, which is an annual award ceremony that celebrates property investors big and small.
Walker said he has always been entrepreneurial. He delivered newspapers in his local area at the age of 12 and even started his own sound engineering company at the age of 15.
He said that he knew that property was the way forward when he purchased his first investment property in Durban at the age of 21 and sold it for three times the amount that he bought it for three years later.
Walker started Sapin when he realised a massive need for connecting investors with other professionals in the property industry.
Our biggest challenge was getting attendees at our events, we tried free events and paid-for events. To overcome this, we realised we needed a mix of the following:
The big difference between the two is their personal network, as well as continued education. When you build the right network around your property investing business, your journey becomes easier. By continuously educating yourself, you are constantly finding new ways to invest.
I would advise they need to really think about what they want to achieve in property and why? From there you need to look at your strategy that you want to move forwards with, and then get the education around that strategy, eg. buy to let.
They say prevention is better than cure. Understand the risks associated with property investing as well as understanding the financial aspect of buying and managing property.
Where will you get the funding from?
Do you have a good credit score?
You may want to consider getting yourself a property coach from Sapin to help you get started.
At Sapin we have partnered with Absa Home Loans, Lightstone, TPN, Bruno Simao Attorneys, Preferental, Gauteng Property Inspections, TUHF and Business Partners. It is through these partners that we obtain regular reports on various trends within the property industry.
We find that newbie investors that don’t get the right advice and support end up paying too much for the property, and in some cases overcapitalise. Some newbie investors try manage the tenant themselves with no experience or knowledge on how to manage a property.
A newbie investor could join a Sapin membership, as through this channel they will get enough information on how to kickstart their property journey the right way.
Very good question as this has been something that I have struggled with - I’ve got a wife Simone, and two kids, Logan (12) and Skyla (10).
I am the CEO of Letsand Property management, a UK Property Management business, I am still investing in the UK market.
In South Africa I run various businesses including Sapin, the Investor of the Year Awards, and The Property Academy. I am still actively investing in the South African property industry. Oh, and on top of that, I decided to start a rugby club, the Junior panthers team based at the Edenvale Rugby Club.
So yes, it is difficult but I have realised that with the right team behind you getting things done, it’s possible to have a good work-life balance. You also need to just set boundaries for yourself.
I feel that technology is going to play a big role. I am seeing a few property management technology platforms coming out such as Preferental. They assist investors in managing their own property without having to go through an agent. Wealth Migrate is another platform that allows a South African to invest offshore with as little as $100.
There are platforms coming out for Stokvel, crowdfunding and brokering of property deals.
At Sapin, we are all about collaborating and partnering so we are constantly on the look out for technology that will add value to our members.
November 2019 when I ran the Investor of the Year, I did not have enough backing from sponsors. I had to make a call whether or not I continued; I decided to continue with the event which was a huge success (I had to personally fund the shortfall). As a result, we ran Investor of the Year 2021 and have the next Investor of the Year 2023 lined up. Sometimes in business you just need to take that leap of faith.
I feel that I am a ‘naturally’ motivated person. I love building businesses and working with people, and as long as I am doing what I love ie. helping entrepreneur’s reach their goals, I feel I will always be motivated.
I would say be patient. Don’t rush anything. It takes time to build a sustainable, profitable business. Look for a local network, such as Sapin, where you can build your own network.
Understand the basics of financial literacy; you need to understand your fiduciary responsibilities as a director and CEO of your business. You need to stay on top of your financials on a monthly basis.
Go out and interview 10 successful property investors and ask them for their three top tips.
