... So you are in the game and in the course of interaction you will be made an offer to buy lands and if you have money then you can buy.

So this land will be incredibly cheap compare to ones at real estate agencies and will also give you opportunity to leverage, which i will discuss later.

Lands offered can now be negotiated with disdain, you will appear to be not really interested so you can make the deal, if you appear to be too eager, you will be overpaying for the land.

Now part of negotiation is to make sure you buy in hectares as they will offer you in acres. Also, you must get ready available the service of credible surveyor so as to do the survey, this will help you map out proper boundary and also to give proper layout plan.

In a similar way i outlined above i have met and negotiate so many land deals, my best deal was a deal i got from my farming related activities.
The land was offered at N200,000/acre, but because i wanted to make deal with them i offered N100,000/acre...

...I was surprised when they counter-offered me N130,000/acre and i told them frankly i can only afford N110,000 and they agreed to N120,000/acre and this parcel of land was a 10-acre property and i don't even have N1.2M in cash. So i called upon my lovely mother to raise N200,000 and i took N170,000 from my cash reserves and paid N360,000 part-payment for 3-acres and N10,000 for entertainment and settlement.

So i now control a 10-acre property worth N1.2M with just N360,000.

I called my lawyer(a friend) and they brought their Lawyer too and we effect a power of attorney and payment schedule agreement. Which indicates that i will pay the balance over a 12-month period.

Thats leverage using 30% to control a 100% worth-investment.

Now i don't have anywhere to bring new money except the land and i don't want to sell it no matter what.

So, i farmed on it and the farm produce will pay the balance. Details not to be discussed as you may as well know, i'm a farmer and an investor...

...In other to buy such land, you must first go to Lands Bureau in the states involved and chart the land, this saves you from omo onile frauds and also make sure you have all families involved before paying and make sure the family comes to the closing with their lawyer and you too with your lawyer.

If you follow these simple rules, you will be buying safe and secure land for speculation purpose.


NIGERIA REAL ESTATE CONTINUES:

#Sources of deals:

In my last reviews i explored the community/farmer link source of buying land.

But for those who want to play the developed real estate market. You will need to use the real estate agencies source. In this game you will need to look for developed area with good real estate prospects. The land must have C of O to be inspected and make sure you buy properties producing income, if not acquire for development purpose.
So lets say you have a 12-flats for sale in Lekki and its has C of O and its asking price is N250million..

... And after looking at your capital and analysing the financials. First, you check the revenue potential. Lets say the flat goes for N4million/annum and that means you have N48million/annum potential if you can get 100% occupancy and if you can add one thing or two you might be able to raise rent to N5million/annum for each flat, thus generating additional N12m/ annum making N60m.
So all you can come up with after sweeping your accounts is 100million, so you decided to buy the property, but now you still have shortfall in capital of N150million remember the price is asking price. So you can make an offer (Note: always bid low), so you offered N150m for the property. And the owner counter-offered that it can take N150m but might consider N220m, so you made a revised offer of N180m and it was refused again and both party finally agrees to N200m Purchase price.

At this junction, we must talk about financing. You have option of making your seller your banker or getting a commercial mortgage from a Bank.

... Seller financing:

Getting seller to take up the role of a banker is very tedious but in a high-end real estate they have no options. In this case you must consider buying a little higher for higher terms.

So, how do turn your seller to a banker, You can offer lease to purchase offer in e 3-yr period, but you will have to up the offer price to get the seller to listen, so lets say you gave the seller two- offers, one for N220m but on a Lease-to-purchase option for 3 years or N200m on part-payment settlement which means you put your N100m down on the table and the seller signed it over to you as the owner with pending balance settlement spread across fix number of months/years.
After, you have the title, you can now approach a bank to get mortgage loan and use the property as a collateral and take N100m in new loan to service your debt obligation to the seller. But its very dangerous and you can also loose your property.

So, i advised you stick to the Lease to purchase option. ...

...So, lets say you agreed to Lease -to-purchase option, and you decided to deposit N50m and the subsequent addition of N40m and the balance to be cleared in the third year.
So by default, at the end of the third year, you will have paid N130m with N90m remaining to balance.

Now, note that the property throws at least N48m/annum, lets say by the third year rents have increased to N5m/ annum, so you will have N60m/ annum maximum, if there is drop in occupancy rates, you will need to bring in fresh funds from other investments.
Lets say the N50m deposited will almost come back in the first year, you only have -N2m negative value in the first year if you can get the 100% tenancy, but can varies according to occupancy rates.

So, in the second year, you pay N40m to the seller thus generating another extra N8m to be put in another property (small investment).
So how does this plays out at the end of the lease-sale period, you can either negotiate to add more money to sale price and have two-year extension.

...So, lets say you agreed to Lease -to-purchase option, and you decided to deposit N50m and the subsequent addition of N40m and the balance to be cleared in the third year.
So by default, at the end of the third year, you will have paid N130m with N90m remaining to balance.

Now, note that the property throws at least N48m/annum, lets say by the third year rents have increased to N5m/ annum, so you will have N60m/ annum maximum, if there is drop in occupancy rates, you will need to bring in fresh funds from other investments.
Lets say the N50m deposited will almost come back in the first year, you only have -N2m negative value in the first year if you can get the 100% tenancy, but can varies according to occupancy rates.

So, in the second year, you pay N40m to the seller thus generating another extra N8m to be put in another property (small investment).
So how does this plays out at the end of the lease-sale period, you can either negotiate to add more money to sale price and have two-year extension.

... If you asked for extension, it might caused another round of fees and br time-consuming. So, you are advised to pay the N90m balance, so you can take the full ownership of the property.

Now if you take over the property, you now have a property that can be used to access new loans from the bank to acquire new properties or equities.
For the case of buying outrightly from the onset. You will need to use your initial N100m as deposit on accessin commercial mortgage, though very rare in Nigeria but they will be happy to borrow you since you have N100m cash to put down.
So you must make sure you negotiate the price to N170-180m.
So the bank will be happy to deal with you as you have your subsatantial money on the deal and you also have a good collateral that will cover the bank from any losses.

So lets say you accessed a N70m mortgage at 11% to run for 15years. Note that in such transaction you should negotiate a good interest rates as 1% concession can spell doom for you..

... If you asked for extension, it might caused another round of fees and br time-consuming. So, you are advised to pay the N90m balance, so you can take the full ownership of the property.

Now if you take over the property, you now have a property that can be used to access new loans from the bank to acquire new properties or equities.
For the case of buying outrightly from the onset. You will need to use your initial N100m as deposit on accessin commercial mortgage, though very rare in Nigeria but they will be happy to borrow you since you have N100m cash to put down.
So you must make sure you negotiate the price to N170-180m.
So the bank will be happy to deal with you as you have your subsatantial money on the deal and you also have a good collateral that will cover the bank from any losses.

So lets say you accessed a N70m mortgage at 11% to run for 15years. Note that in such transaction you should negotiate a good interest rates as 1% concession can spell doom for you..

... If you asked for extension, it might caused another round of fees and br time-consuming. So, you are advised to pay the N90m balance, so you can take the full ownership of the property.

Now if you take over the property, you now have a property that can be used to access new loans from the bank to acquire new properties or equities.
For the case of buying outrightly from the onset. You will need to use your initial N100m as deposit on accessin commercial mortgage, though very rare in Nigeria but they will be happy to borrow you since you have N100m cash to put down.
So you must make sure you negotiate the price to N170-180m.
So the bank will be happy to deal with you as you have your subsatantial money on the deal and you also have a good collateral that will cover the bank from any losses.

So lets say you accessed a N70m mortgage at 11% to run for 15years. Note that in such transaction you should negotiate a good interest rates as 1% concession can spell doom for you..

....

... Thus you will be paying N5.02m per annum in re-paying the loan. Thus you will have free cash of N43m to further invest in other deals
deals.

So as its outlined above we can creatively funds acquisition of properties if we desire to play the league.

It does not have to be a 200m property or you must have N100m before you play this gsme... You can start at your level.

Maybe its only agency work you can do, bringing buyer and seller together and earning commision to do bigger deal yourself.

Life is not easy and I have found it also in my short life here. You must be determined and I mean real determined and passionate to get anything done in life.

In continuation of my series, I will be looking at thr "Triple play leverage", this concept was effectively described in my book "The Art of Personal Leverage" which is scheduled to be release late next-year.
So watch out for the next post, its going to change the way you think about money and also how you can leverage your capital to the fullest.
Bye for now..

... Thus you will be paying N5.02m per annum in re-paying the loan. Thus you will have free cash of N43m to further invest in other deals
deals.

So as its outlined above we can creatively funds acquisition of properties if we desire to play the league.

It does not have to be a 200m property or you must have N100m before you play this gsme... You can start at your level.

Maybe its only agency work you can do, bringing buyer and seller together and earning commision to do bigger deal yourself.

Life is not easy and I have found it also in my short life here. You must be determined and I mean real determined and passionate to get anything done in life.

In continuation of my series, I will be looking at thr "Triple play leverage", this concept was effectively described in my book "The Art of Personal Leverage" which is scheduled to be release late next-year.
So watch out for the next post, its going to change the way you think about money and also how you can leverage your capital to the fullest.
Bye for now..

Its been a while... More knowledge and experience!

Greatest post on investment section..

Read on to learn.....

@olushowunm:Have you written any book, if I may ask?

urchs:
@olushowunm:Have you written any book, if I may ask?

Yes, but not yet published. Thanks....



https://www.nairaland.com/1208600/art-personal-leverage-book-preview

This thread is still here...

This guide is still here..

..

Investment really require information,
With the present situation of the world many companies are diversifying. Oil & Gas is hit, Forex is hit, Real Estate is hit, many filling station are selling now, only God knows where the world is heading to.

As it is Real estate is no more investment, because of the frequently devaluation of naira, only people who transact it in dollars are still in business.

Trucking is really lucrative, many companies are keying into it. Our transport system is still the most lucrative business now.

Imagine ₦27m this can not get you a filling station, a 4units 2bedroom flat, if you get a 2units 2bedroom flat it will never get you a return of ₦4m in a year.

If you invest ₦27m in transportation eg trucking with insurance of 7% you are sure of ₦1.6m in a month in 17moths you have recoup your investment, you have another 2yrs or more to still make more return & still sale the truck.

More information pls contact me

Common stocks are good assets to investors and therefore should be a priority when you are looking for ways to effectively invest.