Good day everyone.
I'm sure you're wondering how the above title is possible. Nevertheless, read on.
A land lord can either own a finished building or an undeveloped land, right? Have you ever considered a fish pond as a piece of real estate?
I have discovered that a growing number of people are renting ponds where available as against outright purchase. It makes sense when you consider that the owner and the renter or leasee extracts the same value from the pond, while the leasee gets more value from total capital expended.
Moreover, most ponds are rented out for about 20k per cycle...and there could be multiple cycles per year.
Let's assume you purchase a pond for 100k and you get a rent of 20k per year, that gives you a ROI of 20%p.a and a payback period of only 5 years!
Which kind of real estate investment pays for itself in just 5 years?
What if there is a buy back clause of 125% of the cost price in the 6th year? That is a pre-agreed selling price of the pond for #125k in the 6th year after already recouping your initial capital.
In finance, this financial technique is known as SLB3 - 'Sale Leaseback Buy back'. You sell an asset, lease it back from the new owner, with an option to buy it back after a specified period of time at a pre-agreed price.
That means with the above example, you get a 225% ROI on your investment in 6 years (average of 37.5%p.a)
Interesting isn't it?
To check out a real life opportunity, do get in touch.
Thank you.
Segun Akande TheBizGuy 08074251161 eoakande@gmail.com