I have a residential commercial house in ikorodu Lagos. Of about three flat and five self contain. I did have completed the ground floor but the up floor is is yet to be completed, due to lack of finance. My desire is to see my house completed before the end of these year, but i don't have enough money to do that. I write to seek advice from naira land, should I borrow from a bank or should I give my house to a developer.

What portion of living space has been completed ?
What portion remains uncompleted ?

it a story building. the ground floor has been completed. it the up floor that is remaining.

400billionman:
What portion of living space has been completed ?

What portion remains uncompleted ?

it a story building. the ground floor has been completed. it the up floor that is remaining.

wiseone1111:
it a story building. the ground floor has been completed. it the up floor that is remaining.

No, what I mean is, what portion of the house is habitable right now ? Stated in rooms and flats.

What portion is non habitable ?

400billionman:


No, what I mean is, what portion of the house is habitable right now ? Stated in rooms and flats.

What portion is non habitable ?

one three bedroom flat and three set of room and palor self contain

while 3 bedroom flat, 2 bedroom flat, one room and palor self contain, and one room self contain are inhabitable.

wiseone1111:
while 3 bedroom flat, 2 bedroom flat, one room and palor self contain, and one room self contain are inhabitable.

What's your inflow like in terms of bank statement? Do you have a good and steady inflow in atleast one of your accounts? (I want to know whether to advise you on collecting a loan facility).

IstandWithGod:


What's your inflow like in terms of bank statement? Do you have a good and steady inflow in atleast one of your accounts? (I want to know whether to advise you on collecting a loan facility).

about 250000 a monthly

wiseone1111:
about 250000 a monthly

Gross or net? ie is it 250k after removing tax & other expenses or before removing tax & other expenses?

Most people here love asking stupid questions

IstandWithGod:


Gross or net? ie is it 250k after removing tax & other expenses or before removing tax & other expenses?

before removing tax and other expenses

wiseone1111:
before removing tax and other expenses

You don't have to finish everything at once...start small and finish big. This is what I mean, don't collect loan from a bank and don't do Joint Venture(JV...by bringing in developers).
Just focus on finishing one side of the compound yourself and rent it out, then use the rent money collected to finish another unit and then bring in someone that can complete the other ones and stay in them for between three to five years without paying rent(sign an agreement)... Thereafter, you will have all the houses to yourself.

wiseone1111:
I have a residential commercial house in ikorodu Lagos. Of about three flat and five self contain. I did have completed the ground floor but the up floor is is yet to be completed, due to lack of finance. My desire is to see my house completed before the end of these year, but i don't have enough money to do that. I write to seek advice from naira land, should I borrow from a bank or should I give my house to a developer.

What part of Ikorodu is the property located?

What is the rental income currently generated by the property?

How much will a plot of land or an uncompleted cost in the area?

Do you have a certificate of occupancy for the property?


I will advise to build in phases, have a 4 year plan for the completion of the property

wiseone1111:
about 250000 a monthly

That is about 3 Million in a year.

How much will you need to completely the house?

By my estimate you will need between N15 million to N20 million loan in order to complete the project.

Based on your cash flow you will need a minimum of 10 years to pay back the loan.
Most bank won't approve loans of such durations.

IstandWithGod:


Gross or net? ie is it 250k after removing tax & other expenses or before removing tax & other expenses?

If he is able to get a term loan with his cash flow, he will be expected to use about 90k every month to service the debt

emmanuelewumi:



If he is able to get a term loan with his cash flow, he will be expected to use about 90k every month to service the debt

There's always a way out... Loan should always be a last resort.

IstandWithGod:


There's always a way out... Loan should always be a last resort.

He should avoid getting a developer, be either gets a loan if his cash flow can conveniently pay up the loan or he builds in phases

emmanuelewumi:



He should avoid getting a developer, be either gets a loan if his cash flow can conveniently pay up the loan or he builds in phases

thank you for the advice