“Give me a lever long enough and a fulcrum on which to place it, and I shall move the world.”– Archimedes
This ancient wisdom holds a profound truth for modern property investors. The best investment on earth is earth itself, and if you know how to leverage real estate correctly, you will become rich beyond your wildest dreams.
The wealthy don’t use their own money to become financially free. The big insurance companies and banks are doing this daily with our money, creating billions for themselves. The secret? Do what they do, but with their money.
Why Banks Will Finance Your Property Empire
The financially illiterate stay in debt by buying depreciating assets with unproductive debt: expensive cars, watches, and meaningless toys. Those who understand how to leverage debt to acquire assets build financial freedom that others can only dream of.
Here’s the game-changer: Banks have lots of money and would love to give it to you – under particular conditions. Their whole business model relies on people using their money. Banks will allow you to borrow up to 100% of the purchase price to buy property. They won’t lend you this amount to invest in equities, bonds, or any alternative investment like crypto. But they will lend you money to invest in property.
The Power of Gearing: Your R100,000 Becomes R1 Million
Consider this: R100,000 can be leveraged to buy a R1 million property at 90% gearing. You’ve used 90% of the bank’s money to pay for the property. You’ve only paid 10% yourself, as a deposit.
Property investing is a financing game. The ordinary salary earner can build a wealthy asset base by choosing to use the bank’s money instead of their own. Many first-time investors are getting 100% financing from the banks, negating the need to pay deposits. The IGrow Home Loans bond origination team specializes in securing optimal financing for property investors.
Case Study: The R500,000 That Becomes R14 Million
Successful property investors understand that through leveraging the banks, tenants, and SARS, they can buy a R1 million property for only R50,000—a property that is worth R1.4 million by the time it reaches its breakeven point.
The breakeven point is when the property moves from negative monthly cash flow to positive monthly cash flow and starts generating passive income.
Here’s where it gets exciting:
If you have 10 x R50,000 = R500,000, and you can qualify for the bonds, you could buy 10 properties with only R500,000 that are worth R14 million by the time your properties break even.
When you realize that R500,000 can buy assets to the value of R14 million, you will truly grasp the power of property. And R5 million can buy up to R114 million worth of properties.
This is the leverage equation that changes lives. Most people are surprised to find out they can afford a property that costs less than a dinner at the Spur.
Take a look at IGrow’s Bulk Deals page to see how easy and affordable we can make this process for you!
The 9th Wonder of the World: Compounded Capital Growth
The more you can borrow, the more assets you can leverage for capital growth, rental income, and tax advantages. Once you have built your asset base, your assets compound and build up equity. The more equity you create to roll over, tax-free, the more you can buy the next investment properties.
Compound interest has been called the eighth wonder of the world. If compound interest is the 8th wonder, then the 9th wonder is compounded capital growth.
Nothing is better than building your own asset base with other people’s money and having other people (your tenants) pay 80 to 90% of it, whilst you enjoy the benefits of compounded capital growth on a multi-million rand asset base and all the tax advantages.
If you only focus on the capital growth of 8% on a R10 million portfolio, you’re gaining R800,000 for the year. This alone, excluding your rental income, will be R66,667 per month in equity.
The 7 Forms of Leverage Every Investor Must Master
At IGrow Wealth Investments, we teach investors to leverage seven powerful forms of other people’s resources:
1. Leverage OPM – Other People’s Money
Banks’ money, friends’ money, and family money. Banks are your primary partners in wealth creation.
2. Leverage OPT – Other People’s Time
Use your team’s time and everybody else’s time, except your own. Your job is to work on your property business, not in it.
3. Leverage OPK – Other People’s Knowledge
Use the skill and experience from a team of experts. The **IGrow team** includes property investment strategists, bond originators, tax specialists, trust attorneys, and rental managers.
4. Leverage OPS – Other People’s Systems
Utilize professional investment software programs to analyze deals, accounting systems, rental management systems, and maintenance software.
5. Leverage OPE – Other People’s Exposure
Partner with investors who have bond capacity. You bring the deal and contribute 50% of the cost, they sign surety, and you become co-owners on a 50/50 basis.
6. Leverage the Equity in Your Primary Residence
Most people are sitting on a pot of gold—the equity in their primary residence—and it’s the perfect way to kick-start your buy-to-let business.
7. Leverage Other People’s Sureties
Sometimes you need someone to co-sign a surety to increase your affordability and credibility for your first investment property.
Remember: When leverage is used strategically, respectfully, and conservatively, it can make you a fortune.
The Pros and Cons of Leveraging OPM
PROS
You can purchase property with minimal or no personal capital
- You can secure 100% or partial home loans via IGrow Home Loans’ bond originator team
- Rental income from tenants covers 80-90% of your bond repayments
- You can leverage R100,000 to control a R1 million asset
- Strategic leverage allows you to buy R14 million worth of properties with only R500,000
- Compounding capital growth builds multi-million rand wealth over time
- You build equity tax-free through refinancing to fund your next property purchases
- You benefit from capital appreciation on the full property value, not just your deposit
- Tax advantages amplify your returns when using OPM strategically
- You can retire 10 to 15 years earlier than traditional investment methods allow
CONS
- You will acquire debt that you must repay
- Banks require a good credit record and proof of secure income
- Tenant vacancies may cause temporary cash shortfalls during portfolio building
- Interest rate increases can affect your monthly shortfall amounts
- Over-leveraging without a proper strategy can cause cash flow pressure
- Requires financial education and commitment to understanding leverage principles
Why the Pros Dramatically Outweigh the Cons
With the guidance and planning of the IGrow Wealth team, you can succeed when using OPM. Tenant vacancies are minimal in areas of high rental demand. The IGrow Wealth Investments team chooses high-growth and high rental demand properties, securing reliable long-term tenants.
Interest rate concerns are managed through proper cash flow planning. The IGrow bond origination team structures your financing strategically across multiple banks to optimize your portfolio growth.
Over-leveraging is prevented through professional investment software that analyzes all 27 variables in property investment, ensuring you know exactly how hard your money is working for you.
The Truth About Leverage That Changes Lives
Less than 1% of the population worldwide will retire rich because they don’t have access to what we’re sharing with you today. The power of property is severely underestimated and misunderstood.
Imagine if you had bought buy-to-let properties 15 to 20 years ago that sold for R180,000 to R250,000. What would your asset base be worth today? Tens of millions.
The real question is: What will your asset base be worth in 15 to 20 years from now if you don’t start today?
Take the First Step Toward Financial Freedom
The wealthy use debt and other people’s money to become financially free. Now it’s your turn.
Whether you’re a first-time investor or looking to scale an existing portfolio, understanding how to leverage OPM is the key to building multi-million rand wealth and retiring years earlier than you ever thought possible.
Don’t spend years saving for one property when you could use strategic leverage to build a portfolio of 10, 20, or more properties. The banks are ready to partner with you. The tenants are ready to pay down your debt. The only question is: Are you ready to leverage this opportunity?
Discover exactly how much financing you can secure, explore proven high-growth investment properties, and receive a personalized wealth plan tailored to your unique financial situation. Book a free consultation with an IGrow Property Investment Strategist today. We’ll show you how to turn Other People’s Money into your financial freedom.
Book your free consultation with an IGrow Investment Strategist today.
Remember: Leverage is a universal principle available to anyone who wants to tap into its power. The only difference between those who build wealth and those who don’t is the decision to start.
