Using other People’s money to Grow to 70 Properties
In this week’s episode, we talk to Taurai Jack, founder of M5 Property Addicts, a company that helps people invest in property for a targeted return of 15% per annum.
Their aim is to give people, who don’t have enough time or money, an opportunity to invest in the real estate market and make a passive income every month.
Taurai started his real estate journey when he was R7 million (US$421,000) in debt; he was invited to a Rich Dad seminar where he met Leroy Slava (episode 54), who was talking about investing in real estate and creating passive income and he realized there was another way to start investing in real estate.
He then took his wife to the next seminar and she signed both of them up for coaching.
In his first month of coaching, his coach told him he’d have to look at 100 deals and analyse them in order to find a good deal.
He looked at 63 deals and ended up buying a property for R160,000 (US$9,623).
After that he started getting other people involved in his deals. He would get 4 to 5 deals a month (eventually he ended up with 10 deals a month) and would pass those deals onto other investors and get paid from that. He would then use that money to pay off his debts.
It was at this time that he reconnected with one of his former co-workers, Retha Van Rooyen, who told him she didn’t have deals but she had access to money from people who were interested in investing in real estate.
They realized they complimented each other very well - Taurai could get the deals and Retha could get the funds from investors; they could create a property portfolio using other people’s money, and with that realization M5 Property Addicts (m5propertyaddicts.com) was born.
Since its formation in 2017, M5 Property Addicts has done projects in 4 cities - Durban, Cape Town, Pretoria and Johannesburg and now has 70 properties in its property portfolio.
This is another eye-opening episode.
