MY REAL ESTATE STORY
TADE CASH-CEO, Wealth Island Properties Africa
What is property repositioning?
Property repositioning is about focusing on the usability of assets in a way that can be good for n everyday person. An ability to look at a property and assess how its value can be amazingly utilized.
For instance, I took 13 units of an apartment, turned it into 26 units of an apartment. As a result, the property that was a yearly rent of about 2m became 8.5million. So, property repositioning as to do developing a more valuable use for that property in a creative way.
This is a missing structure among the developers in part of this country. We waste property in this part of the world. A man bought a piece of land and built an apartment believing that his children will live with him forever. So, when the children leave, the rooms become empty for years. So as a creative mind, we look into how can this property be restructured in such a way that it can be used and be beneficial to people and also generates Cashflow for the property owner.
Housing deficit is not a deficit but benefits for a creative mind. So, how do we create this opportunity? It is done by sourcing for under-used property and then, repositioning them in a way that can be more useful and beneficial. By doing this, you change the economic landscape of an environment.
The idea of most people is to own land before becoming a Landlord, does this really work? What is the right mindset for anybody investing in real estate.
The first thing is that, do not trust your cash but put your cash in an asset that produces. The asset is very fundamental. The most important thing is to control your economy and to this, you don’t need to be a landlord but a Cashflow lord. This means you have things that generate cash for you.
Every asset can be a liability and every liability can become an asset. So, what you bought that look like an asset can eventually become a liability tomorrow. As an investor, pay for what pays you. My economy is supreme because it protects my dignity which comes before my Ego. Fundamentally, what I tell people to focus on is their economy. Instead of you chasing Landlord title, chase asset that pays you.
Your first home does not necessarily have to be the house that you build. The house you will personally build supposed to be a luxury after the financial freedom has been achieved. I call it “Eleganza Syndrome”. Nobody needs to know that you own an apartment but your bank account will know.
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Why is it that some people buy property and they don’t make money from the property. Is it the developer’s fault?
It’s the fault of the person that has acquired the property. People need to separate between being a possessor and an investor. Most people buy property as a processor and not as an investor. As a possessor, you are emotional-driven and not economically-driven. You are supposed to buy a property for investing based on your economy. Your personal house can be bought based on emotional but if you want to buy a property for the purpose of investment, it has to be economically-driven. As far as the property has the tendency of generating Cashflow, the location of where the property is doesn’t matter.
The biggest risk is when you think you’re an investor but in reality, you’re just a processor. If you are buying as an investor, your economy is supreme. If you put your economy before your emotion, you will make sense in your purchase of real estate. Cashflow is a wall of protection.
What changed your mindset towards real estate over the years?
What change for me is when I looked at my priority in life? I asked myself, will land pay my bill? I know it can’t be paid. So, I had to move into repositioning after realizing that what is most important in people’s life is Cashflow and when I began to see the result and the success it produced, I had to reposition my mindset. So, I go for the Cashflow that gives me a consistent income of a lifetime. The point is people have to buy property that generates Cashflow.
If you’re going to define real estate from an investor’s view, how would you define it?
Real Estate is an asset that does three things for me: it gives me predictable, consistent and perpetual Cashflow by providing accommodation and housing need for somebody else. As an investor, you must know your reason for being in the market. The fact that someone is buying for capital gain does not mean it’s your purpose. Anything you buy that is not meeting your purpose is bad for you.
What volume of apartments should I buy that qualifies me as a property investor and for those that don’t even have one, how do such people start?
Minimum of an apartment that you have to own is 8 apartments. As an investor, if you have just one apartment, you are still warming up. The idea is volume because the more apartment, the more the Cashflow. For those that those have, the first thing you have to do is to start. I started out with nothing but because I made the decision to start, my mind started repositioning itself towards that course.
How does someone run a partnership business?
There are three dimensions to real estate investment.
1. You can borrow the land
2. You can buy the land
3. You can build the land
It is not about How much you have but what you can put together. The truth is that you don’t need to join them to beat them but you can arrange to get them beat. To do this, you have to do a collaboration. If you have a business idea and not fund, you can bring financiers into the project and you can share about 50% of the return of the investment. As a result of this, you can make another deal. However, if you are so mindful of owing 100% of nothing, you are going nowhere. The own idea is that you shouldn’t be selfish by doing it all by yourself.
QUOTES
Increment in the price of a property should be a bonus and not a focus. Cashflow is the Focus while Capital gain is the bonus.
To live wealthy, you need Cashflow. To build wealth, you need capital gain.
PROFILE OF TADE CASH
Tade Cash is a world-class cash flow entrepreneur, investor and educator. He is also the king of rental income properties and he is a co-founder of more than 5 cash rich businesses. He believes that asset should help us create predictable, consistent and perpetual income that funds our lifestyle. Tade shows individuals how to take charge of their own personal economy and create a private economy that is flourishing no matter the state of the national economy.
