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Urgent Advice Needed: Start Business Or Buy Land? - Properties (2) - Nairaland

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Re: Urgent Advice Needed: Start Business Or Buy Land? by bns(m): 10:32am On Jan 23, 2010
Lastly
5. Interation
People are saying you should break the cash down. By all means DO! This is nigeria and eveything can be broken down. Even in business if you need 2 equipments, buy one first and use and save the rest. If it is land, what is the time margin between down payment and final payment? Can a loan be used to augment the two? A short term load on 2 months is not a bad idea. You can use that while your business picks up. Microsoft who made $60B in 2008 (30% profit after salaries bonus etc), and even gave out free cash through their LIVE search took a loan (@2% rate) because they could. You can use a down payment to get the loan to get the land fully. (i.e. d land is the collateral) with the hope that you'll pay very soon (less than 6months if ur business really booms). You line of business will determine how well you can break stuff down. Like me, I've been trying to get into Oil production and the cheapest is , (omo, on 2nd thot I no dey talk abeg)
Re: Urgent Advice Needed: Start Business Or Buy Land? by sunboy(m): 10:57am On Jan 23, 2010
@faakay: Exactly what was on my mind. With 5m, you can build a house of your own in another location. And the remaining be saved since you have a moving business already, you can fund your already business but DON'T ever put your money on any business you have no idea.
Re: Urgent Advice Needed: Start Business Or Buy Land? by Nobody: 11:54am On Jan 23, 2010
@poster

Follow our decision

Thanks to atilla, bns & sunboy for backing up my points with theirs

4 heads can't lead you to the wrong channel

Good Luck
Re: Urgent Advice Needed: Start Business Or Buy Land? by peteonyema: 12:08pm On Jan 23, 2010
With that sum of money, I would advice u get a photo printing machine, and \i assure u it is very lucrative, well for sure here i know of in Warri, Delta State.Its is really a big deal especially if u say u r an entrepreneur, then u should know beta about a long term but good income business that will earn u a real good money.Have a nice day, for more info, kindly talk to me Peter on 08073951973 or 07066111634
Re: Urgent Advice Needed: Start Business Or Buy Land? by koolchicco: 5:08pm On Jan 23, 2010
^^8.5M on a photo printing machine? undecided Lawd hammercy!! shocked
Re: Urgent Advice Needed: Start Business Or Buy Land? by Blenheim(m): 5:15pm On Jan 23, 2010
As some posters have advised, I think it's better for you to split the money.

For real estate, 3- 4 million would get a plot of land with good title in a middle-income neighbourhood. You may wish to link up with @lawyer at the Properties section of Nairaland for assistance in this regard. Your rent payment indicates that you still have over a year to decide on your housing plans.

For the business, the balance of 4.5 - 5.5 million would kickstart your business operations even in your desired printing business. It might not be on the scale you initially envisioned, however, you may need minimal additional financial support from :

a.   A commercial bank
b.   An angel investor
c.   A venture capital or reputable financial institution

If you require a business advisory service for further consultancy, you can send a mail to blenheimresources@yahoo.com

All the best
Re: Urgent Advice Needed: Start Business Or Buy Land? by nich(m): 5:36pm On Jan 23, 2010
Blenheim:

As some posters have advised, I think it's better for you to split the money.

For real estate, 3- 4 million would get a plot of land with good title in a middle-income neighbourhood. You may wish to link up with @lawyer at the Properties section of Nairaland for assistance in this regard. Your rent payment indicates that you still have over a year to decide on your housing plans.

For the business, the balance of 4.5 - 5.5 million would kickstart your business operations even in your desired printing business. It might not be on the scale you initially envisioned, however, you may need minimal additional financial support from :

a. A commercial bank
b. An angel investor
c. A venture capital or reputable financial institution

If you require a business advisory service for further consultancy, you can send a mail to blenheimresources@yahoo.com

All the best


very good point!

@ topic,
i'd favour the business over the ppty. especially a biz with good returns. wink
Re: Urgent Advice Needed: Start Business Or Buy Land? by EVERWIN(m): 6:13pm On Jan 23, 2010
First take a holiday, maybe abroad (europe). See everything from an other perspective.
Think, meditate and rethink.
Maybe you see something good to import to Naija. (I have some things)
Buy a sample of it and go back to naija.

Go to your village and buy farmland (use half million), employ there farmers (catfish, cassava,plantain)
Ask you're family and future wife inlaws what kind of small biz (hairdress, taxibus,market) they like, invest for maybe 8 people each N180000, for sure half of them going to fail you, but when even one succeed good, you're in biz. Stay on you're budget and don't let emotions carry you to give them more.
So you have land and food available and small source of income as backup.

Same time: Go to a good bank, don't say how much you have.
Open a Ltd. Start Import. Do everything officially, so you're going to qualify for many loans.

The things you buy abroad, you sell it double to customer in Naija.
Yourself put extra money on top like you sell it triple in the eyes of the bank, to get loan.
After doing this 3 à 6 months, ,naija bank freak out and offer you a loan or/and creditline (I know the do, so).

Employ you're father/mother/brother/sister that you trust on payroll and let them ask for loan or stand garanty for you.
You get loan for buying land at 2% and start building on credit.
Take the max. loans allowed and go inside more biz with it.
Like me, I like to borrow and borrow even when I have money, more money more biz possibilities and more profit.

Meantime your savings are used to generate many turnovers in your Ltd. Work together with real white europeans, not the fake libias or chinese.
Or work together inside a group with heavy famous bizpersons in naija.
And then stay alive in naija, becos friend/family/all the people want you're money and biz. Everyone want you then dead or alive and first like to scam you.

Let you're money roll in profitable investments again and again that you monitor personally, don't let it sleep in the bank, always ask the bank more loan to get more biz.
Re: Urgent Advice Needed: Start Business Or Buy Land? by tomidayspring: 6:29pm On Jan 23, 2010
I appreciate all your suggestions so far,may God increase his wisdom on your life,am definitely getting a better way of handling the decision from your suggestions,a kingdom and business empire is being built from your wise counsels!

For those who think "Maga" is the only way to save up N8.5 million in Nigeria ,i 'll advice you to wake up, life is beyond all that. Whatever you didn't work for will never last and not all Nigerians are thieves.

Best regards friends!
Re: Urgent Advice Needed: Start Business Or Buy Land? by mytdops: 6:38pm On Jan 23, 2010
SeunAero:

Though buying a land in that area u mentioned isnt a waste of money, because Ojodu is fast becoming a place 2 reckon with in lagos.
What I mean is that you could buy and re-sell after a while,  Dont be surprise that after buyin the land for 7m you could later re-sell 4 close to double the cost price, But ofcourse it might take time.

That's the worst advice on this thread. If you have reading the news you would have heard of the term "Negative Equity", and with the volatile state of all economies i will advise you to think wisely. No investment is 100% risk free, you need to sit down and think of ways to manage your risks and pray to God for wisdom. Printing is a service as you don't have a product. Servicing companies are high risks as they are at the mercy of the cheapest option in their field.

I cant give you an advise as i don't know what your circumstances are but if i had 8.5m, this is what i will do -

1. Take 5 million and look for a product that sells to only suppliers (it could be milk biscuit, soap, caustic soda, e.t.c). Work you backside off looking for orders, even if it is as little  as 1 naira on each item (at least you will get your capital back). If you go back in history you will discover that the richest men always had a product while a service man is only as rich as the time his service is wanted

2. Take 2.5 million and put in in a 13% 60-days fixed deposit of a good bank (or a bank that you have a family member in, so that they can inform you when the bank is about to pack up)

3. Then the last 1 million will be your savings or emergency cash,

I wish you all the best
Re: Urgent Advice Needed: Start Business Or Buy Land? by whiteroses(f): 7:17pm On Jan 23, 2010
nbem2008:

If you don't have an MBA with at least 2 yrs experience, or have ran a business successfully for at least 5 yrs, you should not be responding to this tread. This is because whatever your advice will be, is purely based on your personal feelings, beliefs or worse. Definitely Not based on any advanced knowledge, experience or training.

awon omo naija like kwon ma bragado sha, Mba shneMba tongue
Re: Urgent Advice Needed: Start Business Or Buy Land? by DonaldK: 8:05pm On Jan 23, 2010
Available for rent: one b/rm and two b/rm for rent @ Ilupeju Call NOW 07028390077
Re: Urgent Advice Needed: Start Business Or Buy Land? by nbem2008: 8:21pm On Jan 23, 2010
SeunAero:
[/quote]

@SeunAero
I know you didn't attend. But the point is, if you don't have the requisite training nor experience, then you are DEFINITELY not in a position to give the kind of advice that is called for here. Sorry!

[quote author=whiteroses link=topic=385774.msg5373284#msg5373284 date=1264270647]
awon omo naija like kwon ma bragado sha, Mba shneMba tongue

Back to sender!
Re: Urgent Advice Needed: Start Business Or Buy Land? by mansmith(m): 8:39pm On Jan 23, 2010
look before you leep,just make sure you do the right thing
Re: Urgent Advice Needed: Start Business Or Buy Land? by Funkstein(m): 12:55am On Jan 24, 2010
EVERWIN:

First take a holiday, maybe abroad (europe). See everything from an other perspective.
Think, meditate and rethink.
Maybe you see something good to import to Naija. (I have some things)
Buy a sample of it and go back to naija.

Go to your village and buy farmland (use half million), employ there farmers (catfish, cassava,plantain)
Ask you're family and future wife inlaws what kind of small biz (hairdress, taxibus,market) they like, invest for maybe 8 people each N180000, for sure half of them going to fail you, but when even one succeed good, you're in biz. Stay on you're budget and don't let emotions carry you to give them more.
So you have land and food available and small source of income as backup.

Same time: Go to a good bank, don't say how much you have.
Open a Ltd. Start Import. Do everything officially, so you're going to qualify for many loans.

The things you buy abroad, you sell it double to customer in Naija.
Yourself put extra money on top like you sell it triple in the eyes of the bank, to get loan.
After doing this 3 à 6 months, ,naija bank freak out and offer you a loan or/and creditline (I know the do, so).

Employ you're father/mother/brother/sister that you trust on payroll and let them ask for loan or stand garanty for you.
You get loan for buying land at 2% and start building on credit.
Take the max. loans allowed and go inside more biz with it.
Like me, I like to borrow and borrow even when I have money, more money more biz possibilities and more profit.

Meantime your savings are used to generate many turnovers in your Ltd. Work together with real white europeans, not the fake libias or chinese.
Or work together inside a group with heavy famous bizpersons in naija.
And then stay alive in naija, becos friend/family/all the people want you're money and biz. Everyone want you then dead or alive and first like to scam you.

Let you're money roll in profitable investments again and again that you monitor personally, don't let it sleep in the bank, always ask the bank more loan to get more biz.




Good advice I think. . . . .
Re: Urgent Advice Needed: Start Business Or Buy Land? by Funkstein(m): 1:05am On Jan 24, 2010
Blenheim:

As some posters have advised, I think it's better for you to split the money.

For real estate, 3- 4 million would get a plot of land with good title in a middle-income neighbourhood. You may wish to link up with @lawyer at the Properties section of Nairaland for assistance in this regard. Your rent payment indicates that you still have over a year to decide on your housing plans.

For the business, the balance of 4.5 - 5.5 million would kickstart your business operations even in your desired printing business. It might not be on the scale you initially envisioned, however, you may need minimal additional financial support from :

a.   A commercial bank
b.   An angel investor
c.   A venture capital or reputable financial institution

If you require a business advisory service for further consultancy, you can send a mail to blenheimresources@yahoo.com

All the best


[/quote

also good advice in my opinion, 2nd best so far
Re: Urgent Advice Needed: Start Business Or Buy Land? by Funkstein(m): 1:33am On Jan 24, 2010
Personally as an Architect / developer, and petrolhead, I would put my money where my expertise lies, you need to be aware of your strengths and weaknesses, what kind of relevant experience do you have, what are your aspirations and where do you see yourself in the short / long term.

Going back to what I would do, I investigate the possibility of buying land for about 3m in a middle-income neighbourhood with the intention of building at least four small flats on it with another 3m plus additional funding from the banks using the land as collateral, in the hope that three of these flats would provide an income enough to pay off the loans, and allow me to live rent free in the fourth flat.
With the remaining 2.5m I would start importing cars, and vans, whilst filling them with other commodities for sale in Naija from the comfort of my newly built and worry free flat. . . . cool

I hope this and the other posts from Everwin and Blenheim give you an idea of just some of your options.

N.B. Do not be afraid of going into business partnership with other like minded and carefully vetted individuals in a similar position to yourself, this is one of the bug bears of small scale West African businesses, we tend to think in terms of me me me instead of us us us, oyinbo people forge business parterships all the time, infact I would suggest it is the mainstay of international business at every level.
Re: Urgent Advice Needed: Start Business Or Buy Land? by Wilife: 9:10am On Jan 24, 2010
Hello,

I see quite a number of pple have adviced you to consider going into partnerships.

Good idea but from experience, pple are so hard to trust everywhere.

Good men with the best intentions also do disappoint so be forewarned.

Please, document every verbal discussion and agreement and do not , I repeat do not go ahead with any of these business ideas without good legal documentation even if your blood relations are involved.

I can only but wish you the very best in your endeavors.

, Please, pray as you take the step(s) of faith.
Re: Urgent Advice Needed: Start Business Or Buy Land? by Nobody: 9:51am On Jan 24, 2010
Buy cars for each your familic members but make sure they'r concurent. Mhseewwww!!
Re: Urgent Advice Needed: Start Business Or Buy Land? by luvola(m): 12:48pm On Jan 24, 2010
@ op - i wil advice dat u shud go partly on biz and also buy land . identify d/f types of biz u knw u can do and analyse d cost and benefit , prepare a feasibility report of each category of d biz ,make an apprasal of all d biz u intend doing and select d best,but it wil b better of if u can spread d money on d/f types of biz for u to hav d/f streams of income. also seek advice frm successful financial managers u knw for investment advise
Re: Urgent Advice Needed: Start Business Or Buy Land? by whatalife: 12:53pm On Jan 24, 2010
@poster,
The fund with you in Nigeria standard is a lot of cash, please play safe with it. I was once in this type of dilema, What ever advice you will finally take and act on , make sure it is the one that you can recover your fund back with good interest or something close to cash intact.Me while i belive you can get good deal from Fixed deposit from GT bank while you think of what to do with the cash.Doing business in Nigeria is realy challenging, there are two many processes which your fund can develop wings,think twice if you will do business that has to do with nepa, you will make money but the likes of Otedola's and Co are waiting for you(Diesle Lords).
Consider advice from  @"Funk stein" .
I personally build 4 units of 2 bedroom apartment for about 8million naira some where in the north central of Nigeria. this exclude the cost of the land, this rent for about 200k per year, am considering selling the units for an offer of 14million naira.
The fund used for this project is from cur@poster,
The fund with you in Nigeria standard is a lot of cash, please play safe with it. I was once in this type of dilema, What ever advice you will finally take and act on , make sure it is the one that you can recover your fund back with good interest or something close to cash intact.Me while i belive you can get good deal from Fixed deposit from GT bank while you think of what to do with the cash.Doing business in Nigeria is realy challenging, there are two many processes which your fund can develop wings,think twice if you will do business that has to do with nepa, you will make money but the likes of Otedola's and Co are waiting for you(Diesle Lords).
Consider advice from  @"Funk stein" .
I personally build 4 units of 2 bedroom apartment for about 8million naira some where in the north central of Nigeria. this exclude the cost of the land, this rent for about 200k per year, am considering selling the units for an offer of 14million naira.
The fund used for this project is from current business but things have realy slow down.
Mewhile i have invested money in all kinds of businesses and all gone without any trace.But i think i got right with real estate.
Just think twice before investing a penny in any businessrent business but things have realy slow down.
Mewhile i have invested money in all kinds of businesses and all gone without any trace.But i think i got right with real estate.
Just think twice before investing a penny in any business
Re: Urgent Advice Needed: Start Business Or Buy Land? by Jerjens: 7:26pm On Jan 24, 2010
@ poster
buy land for 7m (u did nt mention cost of certification plus u may need to fence to secure the property)
give or take 1m left pay rent, source printing job for already established print press fro a commission
tough i knw sell land 1yr later for 10-15m
buy new land and start development

it wont be easy, must av focus! smiley
Re: Urgent Advice Needed: Start Business Or Buy Land? by vianooo1(f): 4:40pm On Jan 27, 2010
As an investment analyst, The reason people got into trouble with their investments on the Stockmarket an co, is just as simple.putting all ur eggs in one basket. Do ur research before ivesting and if u must do invest small first. You cannot put all in experiment,that is what it is if u havent do it before. Do it 50-50. Buy a house at about 4.5 and 4m for the business, All the best.
Re: Urgent Advice Needed: Start Business Or Buy Land? by Yoighaman(m): 12:04pm On Jan 28, 2010
@Poster

If i had N8.5m, i will:

- Fix N1m with a sound bank
-Invest N1.5m in this crashed stock market
-Invest N3m becoming a Financier/Ceditor to strictly bankers, oil and Gas & Telecom guys who are always in need of cash; earning 10%/month
-Buy a landed property worth N1m in a remote area
-Start a service business with N2m

Cheers.
Re: Urgent Advice Needed: Start Business Or Buy Land? by baslone: 1:39pm On Jan 28, 2010
It's going to depend on the kind of person you
are. If you have got the spirit and mind to hustle, it"l be
easier for you to breakthrough in whatever business you
want to do in Nigeria.

But for me, the bank is the last place i'll put my Money to sleep!
Re: Urgent Advice Needed: Start Business Or Buy Land? by AwosikaIsrael(m): 1:41pm On Mar 13, 2010
Anyway i dont know what anybody has said to you but in my opinion i think u sud go on with ur printin biz or look at other biz dat is not very capital intensive and has good profit

Re: Urgent Advice Needed: Start Business Or Buy Land? by AwosikaIsrael(m): 1:42pm On Mar 13, 2010
Anyway i dont know what anybody has said to you but in my opinion i think u sud go on with ur printin biz or look at other biz dat is not very capital intensive and has good profit

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