houses and sold them into the market. We made over R4m in profit, just over R2m each.”
He understood right away that his f irst millions were an opportunity to create more wealth and they started looking at offshore property. They invested in a property in London, close t o Wimbledon station and home to nearly 60 000 South Africans in need of lodging. They put in £20 000 of their own money to use to build two more bedrooms.
“In London you rent properties by the bedroom and suddenly we had five income streams. We lived in the house while we did this, which was inconvenient, but if you live in a property for one year in the UK you aren’t susceptible to capital gains tax. With the value we added to the house, we re-mortgaged and bought another property, which we moved into and did the same thing again. We earned over £1 000 passive income per property.”
The same principles that earned Pickens his f irst million later ended in him turning a $4m company into a $40m company that listed on the Australian exchange in less than five years. “To create money or income streams, you have to have knowledge and skills,” he says, but adds that nobody ever learnt to swim by reading a book. “You have to get started, manage your risks and learn along the way. The more you can partner with experienced people, the more successful you will be. If you understand this, achieving both objectives is easy!”