Date: 22nd May 2017
A real estate professional, while speaking at an industry review meeting with other stakeholders early in 2017, made an interesting observation that I find especially noteworthy.
According to him, due to erratic performance of the Naira and the associated economic recession, buyers in the real estate marketing…
“…became a little selective, so developers who met their needs in terms of pricing and creativity actually did well. Quality and price became king because money moved intelligently in 2016,”
He however went further to forecast that the Diaspora bonds proposed for introduction by the Federal Government, coupled with the rent-to-own initiative that’s spreading to many parts of the country, backed by a restructured mortgage system, would yield huge benefits to the real estate sector triggering sustainable recovery.
As a Real Estate Investor, How intelligently does YOUR money move?
Have you ever stopped to ponder over that question even for a moment?
If NO, I recommend you make it a habit from today onwards.
In fact, I IMPLORE you to start, if possible right now, as you read this article!
What determines where you invest your funds? For how long? How? Under what terms and conditions? Based on what exit strategy (ies)? etc
How do you decide whether to buy a rundown apartment, renovate and resell it, or just buy multiple parcels of land that you will resell, maybe with a little development on each?
What are the factors you put into consideration? How do you choose the location for the landed property you invest in? What factors – historical, current and futuristic do you consider in making up your mind? How do you choose the team of experts you work with?
But why do I insist so fervently, that you habitually question yourself in this manner you wonder?
Well, that’s because your ability to intelligently move your real Estate Investment funds will often be the greatest determinant of how successful your real estate investing turns out to be.
Now that I’ve said it, you may think it amounts to stating the obvious – and that it is even common sense.
However, the truth is that quite a lot of people move their real estate investment funds without making much effort to engage in intelligent thought about what they are doing, and why.
To make matters worse, most often depend on (people they consider) trusted others to do any major thinking for them to decide where their money should go, and what it is to be used for.
[NB: Many who do this kind of unintelligent spending tend to be those whose monies were acquired via crooked channels. However there are a number who naively spend their hard earned funds this same way. It is primarily to the latter group that I offer the ideas in this article]
Please note that this is not an attempt to discourage you, especially as a novice investor from taking advice, from others more competent than you are.
What I am saying is that you should not get to a point where you depend so heavily on those who give you advice, to blindly taking instructions/orders from them about what do to and how to do it.
You need to ensure that YOU UNDERSTAND fully what you are doing, even when someone with superior real estate Investment know-how is the one guiding you to do it.
You must ensure that YOU are sure/confident/convinced that doing THAT thing is the right way to go!
How do you do that you ask?
I offer a few tips below:
- Ask Questions – As Often As Possible
The fact that you’re a novice in real estate, or that you do not know as much, or have as much experience as another expert, is NO REASON for you to swallow everything s/he says without question.
There will often be instances when you “feel” a need to know more, or understand better, why s/he has said a certain thing(s). As long as you’re not rude, it will often be wise to give in to that impulse you feel, to ask questions.
Indeed, if you really want to boost your learning and equip yourself to prevent avoidable mistakes in your real estate investing, you must form the habit of asking questions – intelligently – based on what others tell you.
- Double-Check Answers You Are Given With Competent Others
This does not mean you distrust the first expert who tells you what to do or what s/he thinks you need to do. it’s just a way of ensuring you get enough perspective on the issue you’re asking about.
By availing yourself of answers from multiple competent experts, you are likely to end up with a more comprehensive view of the issue, and that would equip you to come up with a more balanced decision.
- Do Independent Research to Learn More
Since those you get help and advice from will be human, like you, it goes without saying that they CAN make mistakes – and they CAN be wrong.
This is why you will need to constantly inform and educate yourself, independently of whatever they may tell you.
Sometimes this could help you see what they might miss, and YOU could end up even helping them by opening their eyes to something they are missing regarding the real estate investment opportunity or activity you are focused on.
- Pay Close Attention to Market Signs/Signals
Now, even when you and your advisers have done all your discussing and research, the fact remains that anything can happen at any time – especially in an unpredictable economy like Nigeria’s.
One policy change announcement by the government could jeopardize completely, any plans you may have settled upon based on your elaborate preparations.
For this reason, you want to stay abreast of current affairs news locally and beyond, that may have a bearing on what you plan to do.
Thankfully, technology makes it quite easy to do that through a variety of channels.
You can subscribe to email newsletters by real estate expert authorities – like my Real Estate Investment Chronicles – through which you can ask learn and questions to stay updated.
And of course you can follow real estate news on reputable news media websites like Punch, Guardian and other news publication that offer real estate news.
What matters most is that you actively inform and educate yourself to stay alert to, and aware of any possibilities that may have an impact – especially negatively – on your real estate investment plans.
if you fail to do that, you would effectively be working blind in your real estate investment business – meaning you would be unable to RELIABLY build your success, which would amount to a waste of valuable time, effort, money and resources. In these tough times, that is not a wise thing to do!
Summary: Empower Yourself to Make Real Estate Investments Intelligently – and Not Blindly
In a well managed economy, free from major influence of unproven wealth or corruption fueled investments, those with the knowledge and competence to move money intelligently are most likely to prosper, especially in high capital ventures like real estate investing.
The current state of affairs in Nigeria, where “free money” is no longer floating around, provides as close a situation to the above economy as can be imagined.
That’s why those who know how to move money intelligently, are bound, in the long run, to succeed ahead of others looking to cut the usual (but no-longer-as-lucrative) corners to make money!
TIP: If you need help making use of the ideas I’ve offered above, or wish to learn more, contact me using the form on this page – click. For more useful articles, true stories, case studies, special reports and white papers on real estate investment, sign up to my Real Estate Investment Chronicles™ mailing list.
Lanre Karim – Nigeria’s Real Estate Investment Advocate (REIA) ™ – is the author of the Real Estate Investment Chronicles (REIC) ™: a thought-leading online publication that features tried and tested Real Estate Investment strategies– and solutions – for everyday persons.
Over a decade of hard won experience backed by extensive client testimonies and sales based referrals by satisfied clients, make Lanre Karim’s LREO (Larry Real Estate Organization) a preferred provider – in partnership with Pwanhomes Ltd – of cheap, affordable and dry landed properties, at Ibeju-Lekki, Eleko, and Ahoyaya area of Lagos, Nigeria.
Our demonstrated passion for delivering pocket-friendly, customer focused solutions in “C of O” processing, Estate Development and Management, gives us a unique competitive advantage that’s making an increasing number of smart thinking, results focused clients prefer to invest with us.
At Larry Real Estate Organization our business purpose is not just to sell real estate properties, but also to provide customer focused REAL ESTATE INVESTMENT decision making solutions.
This is why our clients are our most fervent advocates. They rave about what we do for them, so that over 70% of our new sales come via referrals. We focus on helping YOU come to a decision you are comfortable with, about taking the decisive step to invest in real estate.
This is done through the experience based expert information and education we offer – with no strings attached – to get you from being a novice or beginner, to a well informed and discerning enthusiast/buyer.
History has shown that the resulting transformation in the thinking of persons exposed to the above, equips them to invest wisely in landed property, for profit. Many of our clients (based within/outside Nigeria) are today proud owners of serviced plots of land at Paradise Gardens, Oakwood Gardens, and Phase 1 & 2 etc.
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Lanre Karim has been advocating self-education for investment in real estate as a strategy for adoption for years. The current difficult socioeconomic times we’re in make Lanre’s message about the multidimensional potential benefits of real estate investment more compelling than ever before.
This is why he has launched www.lanrekarim.com to offer true-story-based information and education for persons in need of expert guidance towards investing successfully in real estate. Access to both contents will be free for the most part.
So you owe yourself the duty to avail yourself of the opportunity to at least get better informed and educated about your intended investment. Get started arming yourself with valuable information and education by tapping from Lanre’s well of real estate wisdom via his Real Estate Investment Chronicles (REIC) ™ – click here to sign up now.