Weekend Argus (Saturday Edition)
‘First of all you need to dream…’
DARREN Francis recently won not only the Investor for Change award at the SA Property Investors Network but received a standing ovation as he was named Investor of the Year.
The annual awards ceremony brings together property investors, financiers and professionals to celebrate those who have put together deals that uplift suburbs, communities and cities.
Paul Stevens, head of Just Property, one of the main sponsors of the award, says: “We believe in creating wealth through property and this is exactly what Francis does – not only for himself but for people in his community too.”
From the first dilapidated property which Francis rebuilt, renovated and turned into a multi-let property, he has been bringing jobs and hope to the Cape Flats. This is how he did it.
When did you start investing in property?
The journey truly began in 2009 when, at the age of 27, I read a book by Jason Lee called Making Money out of Property. I was gripped within the first five pages and began researching, talking to people and looking at property trends. I decided to focus on residential property for the first three years but I had no idea of the journey and growth ahead of me. Ten years later, I sold my first investment property.
What made you choose property?
I have tried forex trading and started photography, PR and other businesses, but property has been more consistent in terms of growth.
The strategy I employ is simple and I play in a market that is not focused on the big players. The return on investment on almost every investment since 2019 has been very satisfying.
To date, we have flipped six homes, are registering a vacant erf and have one rental property in our portfolio.
Tell us about the first property
It was a complete and utter wreck. You could stand at the front door and look through the walls. There were holes in the walls where there’d been copper pipes and the window frames were being removed when I bought it.
The only thing that was intact was the roof – but I could see the potential in the property.
Many months later, with tears, sweat and stress, it was transformed into the property I knew it would be.
Every project since has been similar – of the six, five required a full gut and replacement, from the toilet bowls to the ceilings. In the last property, we replaced the ceilings and the wiring.
What are some of the challenges you encountered?
Dealing with inefficient workers/ contractors and a shortage of materials were very challenging, but we used creative strategies to ensure we limited our risk. The teams I use now are based on those early lessons; we operate more smoothly and work 50% faster.
What is your vision?
I come from a poor background and, growing up in Tafelsig, I wanted to do good as well as make something of myself. After flipping my first property, I visited my mother and she sent me to shop for her. I looked at the young people sitting idle on the corners and it dawned on me that I could make a change – through my investments, I could employ people and, hopefully, change their circumstances.
I dropped my mom’s goods off and told her, “This property thing is bigger than me – the purpose of my journey is bigger than me making money.”
My vision was first to secure cash for growth but I always knew this strategy would change once we reached our desired level. That time has come now.
We want to grow our share of the rental market in 2022 by offering quality, affordable accommodation with excellent services for the people of the Cape Flats and surrounds.
What is your new strategy?
We are working on something that could feed many families for months, while creating jobs in these areas.
Money isn’t our main focus; we want to create jobs and living spaces our people can be proud of.
We are working on, and adapting to, our new tenant strategy – to look for tenants who are trustworthy and treat them well.
What area do you focus on?
I focus on Mitchells Plain. Not many people would think of investing there but Mitchells Plain has always been close to my heart. Analysts and other investors always look at the big markets, like the Atlantic Seaboard, but ignore areas like Mitchells Plain and Khayelitsha.
That was my opportunity. I watched the market and it went in the direction
I believed it would. Billions of rand leave these areas but very little investment is made there. We are looking at changing that. There is room for big investment in Mitchells Plain and we hope to secure partners to create opportunities for our people while creating significant return on investment.
What advice do you have for youngsters who want to become property investors?
Dream! Then follow the dream with dedication, determination and discipline. Don’t be afraid to fail. Failure is part of the journey to success. Make sure you have sound financial goals and live by them. Then get the right education to assist you.