 |
| IGrow Official Newsletter |
Issue 36: July 2009 |
 |
| Are you a successful or an average property investor? |
 |
What do wealthy property investors do or have that enables them to accomplish so much more than the average investor? Investors become rich as a result of developing what I call leverage.
Leverage can be defined as the use of borrowed funds to finance a portion of the cost of an investment. |
Leveraging is the key to maximising your potential for success in the investment game. It enables you to achieve far more than what you would have been able to do if you had to rely on your own money, time skills and experience as most average investors do. Leverage is the key to your financial freedom and success.
The first kind of leverage available to you is the IGrow double trust structure. This structure comprises a safe trust and a risk trust, which can be described as the wealth protection trust and the wealth creation trust respectively. At our seminars we refer to these as our property and family trusts.
The family trust (no risk, no debt trust) would contain all you’re
paid up assets such as policies, furniture, jewellery, paintings, appliances, tools, equipment, and machinery etc.
This trust will be totally free from creditors.
|
 |
On the other hand, the property trust will hold all the bonded/financed entry level properties. This trust will be creating capital growth and rental income for you over the long haul. You should always separate different classes or categories of risks properly to safeguard yourself and your family from future risks, such as market fluctuations, banks and SARS. Your long-term goal should be to be in a position where you own nothing in your personal capacity. Fact is if you own nothing, you have nothing to lose.
Once your trust structures have been put into place, you will be geared for successful investing. The tax efficiency and asset protection benefits are too enormous to mention in this article and our IGrow tax and trust expert will inform you about these benefits in our next newsletter.
The second leveraging technique is to use the time, money, effort, knowledge and experience of other people who are very importantly property investors themselves.
 |
By consulting with the IGrow team of service providers, we will assist you in structuring you’re existing and future property portfolio. (Remember, there will only be five to seven years of positive healthy capital appreciation before the next down turn in the market will hit us again.) The next property boom is expected in 2019. Two important questions you should ask yourself are ‘How old would I be then?’ and ‘How much could my property portfolio have appreciated if I started in 2009?’
The IGrow team’s primary objective is to ensure that your finances are optimally and correctly structured for property investment. Our expert team of financial planners, bond originators and property strategists will assist you with this. |
 |
Remember, you can only refinance your property if four key criteria are met:
| |
 |
|
There has to be enough equity available to keep your gearing ratio at an acceptable level. A 70% gearing ratio is seen as an acceptable level. |
 |
There has to be sustainable capital growth in the area you choose. For example if you bought in Gordon’s Bay or Strand it is not going to be as easy to refinance your property due to the oversupply of developments and residential units in these areas. |
 |
There has to be year on year rental growth in the area. |
 |
You must qualify for the extra financing or a second bond. |
The IGrow team will ensure that you are safeguarded against overexposure with the banks as you will not be able to refinance if you are overexposed.
Our team will ensure that one of your existing properties is refinanced correctly to ensure access to a safety net to cover deposits or shortfalls on existing investment properties. This will alleviate the burden of having to use your own hard earned salary to pay for your properties.
Many investors think they are stuck in terms of their affordability but there are many things the IGrow team can do for you to improve your current cash flow position and your affordability when it comes to applying for finance.
We will also help you to improve your disposable income drastically and this is where the correct advice is indispensable.
Once these basic aspects have been taken care of, you will have a plan, goal and a track to run on to build your property portfolio properly and tax efficiently.
 |
Based on your affordability, the IGrow team will make a recommendation on the number of properties you could purchase in future.
We will show you how to buy, afford and manage your portfolio with many strategies to mitigate any possible risk. Because the reality is that there will always be risks. |
These consultations are free to all gold and platinum members. You will become a free gold member by attending one of our FREE property and trust seminars. These seminars are free for a limited time only, so do not delay – book your seat to financial freedom and leverage today and reach this goal with the help of a fantastic team of experienced property investors. Approximately 100 delegates attended our last seminar held on 18 June at the President Hotel in Sea Point. Our next upcoming seminar dates are 13 July and 27 July but do hurry to book your seat today, as seats are very limited. The IGrow team looks forward to seeing you and meeting you there and is standing ready to assist you in reaching your property goals and take advantage of superb investment opportunities.
|
| IGrow Property & Trust Seminars |
There is only so much that we are able to put in writing. It is for this reason that we offer Seminars to provide a far more engaging and pro-active insight into the business ideas and investment strategies that are offered by us at IGrow Wealth Investments.
There are no obligations attached to these Seminars and the wealth of knowledge that you can potentially gain by attending one should alone stand as an alluring and powerful incentive to attend.
 |
|
|
 |
13 July 2009
Bellvista Lodge,
Bellville |
| |
|
27 July 2009
Bellmont Square, Rondebosch |
|
|
 |
 |
*Limited space
*Booking Essential
*Right of admission reserved
Contact Deatils: |
|
 |
During the seminar:
|
We will show you how and where to start. |
|
|
Do's and Don'ts of investing in property. |
|
|
Unique refinancing and other investment strategies. |
|
|
How to calculate ROI (Return on Investment) |
|
|
How to analyse and compare properties
before you buy. |
|
|
Where to buy, what to buy and how to structure
your deal. |
|
|
In which entities to buy. |
|
|
To plan conservatively for the long term and
short term. |
|
|
How to build a team of professionals around you to
assist you with contracts, finance and all property related matters. |
|
|
How to use the bank's money and build a massive property portfolio. |
Seminars presented by:
|
Jacques Fouchè
Property Investor |
|
|
George Robertson
Attorney & Trust Specialist |
|
|
Neels Stander
Risk Advisor |
|
|
Michael Dryden
Trust & Tax Accountant |
|
|
Mike Thorne
Property Management Specialist |
|
|
|
 |
