in

Playing the Property Game By Tunji Awonusi

Tunji Awonusi

I will like to start this month’s column by sharing a mail from one of our esteemed readers who sent me an email requesting more information about starting a property club in Abuja.
Hello Tunji

My name is Benson, I write to commend your column in the February 2018 edition of the The Interview with the caption “Play it safe with shares and property investment”. The main take away for me is when you advised on the formation of property investment clubs with friends and work colleagues to meet monthly and invest in real estate. I am interested in knowing how we can set up one in our area and if you can write on steps that will help us in setting up the club?
Thank you very much and I look for forward to reading from you soon.
Benson.

Thank you for your email Benson and I encourage other readers to give us feedback on how we can help them become financially free through our monthly column.
I will outline five steps that have been tested globally and I can with some confidence say it works.

Five Simple Steps in Property Investing

If you sincerely desire to enter the property field, to purchase property as your investment, there are many ways that you can do it. Perhaps the simplest way of all, and the starting point of many real estate fortunes, is property investment clubs.” This refers to the strategy of buying properties with friends, family and colleagues and leveraging on their cumulative knowledge to grow your portfolio.

1. Do your monthly club research

Do your research, in advance. Select an area in which you want to purchase the property. You might want to look at under-priced properties that need some renovations which or new properties coming into the market that can be bought off plan.

2. Negotiate the best possible price

The important element in property investment is the price you paid for the property. You should use your power as a group to your advantage by negotiating discounts on new investments coming into the markets with your numbers.

3. Work Closely with the developer

One of the best ways to enjoy optimum return on investment is to move in quickly and work with the developer on your units and try and negotiate if you can use your materials for finishing. This will help in making sure that you control the source of materials and you are sure of the quality of products used.

4. Take Action to Maximise Your Investment
When you have renovated and transformed both the house and garden so that it looks good, you can then do one of the three things below:
First, you can sell the house for more than you paid. You can then take the profit from the sale of the house and buy another house to refurbish and renovate.
Second, you can rent out the house for a monthly payment that more than covers your payments and gives you extra cash flow in addition.

Third, you can rent out the renovated house and then go to a bank and refinance the house, often for as much as you paid for it, based on the new earning power of the property when rented out to a tenant. With a tenant paying you a specific amount each month, you can get a higher appraisal of the property’s value. The bank will lend you money by accepting the property as collateral.

5. Start again with a bigger Property
As you increase your investments and assets, your cash flow and your experience, you can repeat this process as you move up to bigger properties and eventually apartment buildings.

Many of the great real estate fortunes in Nigeria started off with an individual purchasing a single house and then doing the hardwork of maintaining it. He then sold the house, bought another and invested his time to renovate that house, and so on. Eventually he will build an empire that included dozens and often hundreds or thousands of residential units.
If you need help starting a property investment club or you wish to join one of the new ones we are forming in Abuja and environs please email me on: onlyoutdoors@gmail.com

My Husband Is Too Honest – Hadiza El-Rufai

My Husband Is Too Honest – Hadiza El-Rufai

I’m Building A Generational Business, But My Children Have A Choice – Portfolio Entrepreneur

I’m Building A Generational Business, But My Children Have A Choice – Portfolio Entrepreneur