For sometime now, many of my posts were deliberately based on investment property management particularly on contentious issues and concerns affecting contractual relationship between homeowners and occupiers.
And I could easily attribute this to the ongoing work on my forth coming book titled Demystifying Real Estate Investing, which is about how you or anyone could invest in real estate with remarkable aplomb simply by applying the principle of purpose-driven real estate investing with some level of creativity coupled with the essential skill-set required for real estate investing success.
As a result, I took a short break off real estate investing to attend to and address some more pressing issues threatening to divide us as a people in Nigeria because of our diverse political and socioeconomic view and ethnic differences. I contributed my own quota in my own little way to persuade and appeal to those clamouring for war if their call or agitation for secession is undermined to give peace a chance and seek redress diplomatically instead of threatening to go to war.
I have concluded plans to end the month with just four quality articles already published this month because I have written more than enough articles especially on issues and the envisage problems that may emanate or stem from the series of threats and quit notice of October 1st from the Hausas against the Igbo tribe in the north and of course that of the Igbos against the Hausas in the east.
However and somehow I have decided to end the month with another piece by sharing with you a special and unconventional information on real estate investing to end the month long drought of investing information as well as usher us to the new month on a brighter note.
What am about to share with you are the most jealously guarded secrets of seasoned and experience investors and honestly you must have been seeing experts use some of them or occasionally hear them talk about some of them but seriously or certainly are not on your conscious mind because no one really talk about them and no one usually ask questions about them.
It is like making money and understanding how money really works, many people are out searching, struggling and working hard for money even in the wrong places but after making the money they engage in profligate spending, they splurge and fritter it away on wasteful and material stuffs.
And they start chasing money all over again and kept repeating the same process because of lack of financial knowledge and the irony of it all is that they believe they know and understand how money works and never dare to ask questions about how to make it work for them just like renowned real estate investor, Robert Kiyosaki explained in his book Rich Dad, Poor Dad.
I find this topic fascinating because its contents are as familiar as money but very am so sure that only a few are conscious about its essence and why seasoned and experience investors can’t make any investment decision without considering them and they have mastered how to effectively and successfully use them to stay on top and ahead of the investing game.
Expert investors overtime have shown excellent understanding in handling even the most complex and complicated real estate transactions at a very serious level and have abode by the rules and ethos of successful real estate investing which makes people revere them and best explain why they are called experts.
I crave your indulgence to help you bring some of these open but jealously guarded secrets to your conscious mind to enable you understand and conceptualize most of them to get better as an investor, homeowner or real estate professional and without wasting any more of your precious time lets dive into the discussion.
Many of us are guilty and regret the fact our culture and society entrenched in us that real estate investing is only design for grown ups, adults, employees, business owners, perhaps married couples etc which makes many wait till they are in their late thirties or in their forties for the word real estate investing makes sense or sounds great to their ears.
If you look at some of the most successful real estate investors in the world today they conceived the idea of making investment particularly real estate investing at a very tender age, most between the age of eight and ten and this in my opinion makes them the ideal investors and desperate investor who only think of making quick money but is inept, lack purpose and insight to what real estate investing and often time are frustrated, confused and disappointed by investing challenges.
This ideal investors showed great interest and passion to learn the fundamentals by seeking knowledge and skill-set required to invest successfully and they acquainted themselves with some of the most important real estate investing strategies and techniques and they keep getting better and stronger by the day and didn’t wait till they have the enough money to invest or get old but rather put the mind and brain to task on how to achieve their investment dreams.
Surprisingly women were completely left out of real estate investing because of the erroneous belief that providing shelter for the family is the responsibility of the husband and they need not invest in real estate owning to the fact that they would probably stay or live in their husband home and most ignorantly showed no real interest or concerns.
Patently, this general erroneous belief was perfect and socially acceptable in the past because people held moderate political and socioeconomic views and we had a normal society and very functional systems in place that seemed to favour the moderate views, needs and wants of the people and only a few educated ones were interested in what government does and could take advantage of government opportunities unlike what we have now.
Today you will agree with me that our society has evolved technologically and it now wears a new look which suddenly stir up people’s interest in competing and scrambling for every opportunity out there be it for employment, education, position, contract, needs, wants and we sometimes engage in cut throat competitions in business and for political positions.
As a result of scrambling for opportunities for a better life, it changes our mindset and challenges our general beliefs on socially acceptable behaviour and attitude to life and the way we act, react and respond to life as well as how we relate with one another.
In my own opinion and observation, the changes create so much negatives and perhaps little positives in individuals and groups in our society, community, environment, the way we do business, how we relate and treat people etc.
In the process of adjusting and dealing with these new developments our political, economic and social situations worsen which created some heated argument on issues of national concerns particularly on nation building that has led to regions threatening to disengage by calling for secession
I wont deny the fact that there were established cases of fraud, corruption, mismanagement, looting and laundering of public funds meant for infrastructural projects into private pockets by corrupt political office holders as well as government officials who scuttle government plans for the masses but the truth is some people still managed to somehow get something done because of something special they have in them.
Apparently, this is true with seasoned and experience real estate investors who understood that the best time to invest is when there is a melt down in the economy or in a recession when there is a free fall in prices of goods and services including real estate properties but many due to lack of financial knowledge or perhaps lack of information didn’t benefit or take advantage of these opportunities.
Those who bought into the idea and took steps are somewhat more comfortable today than most people not because they have more money or richer than some but because they have the willpower to make and take right investment decisions and actions when economic seemed down and funny enough not everyone with the financial muscle took advantage of these investment opportunities then.
In other words, many had the money to invest in real estate twenty or thirty years ago but they didn’t not because they don’t have the money but because they contemplated and lack the willpower to take action and most live their life today in regrets and fear of the uncertainties.
I sensed the same is about to happen to many if nothing is done to salvage the situation for them not to live a life full of regrets, frustration and fear of uncertainties in their retirement or old age.
Real estate investing is about the only investment as of today you can invest in that provides you with the opportunity of staying in your investment, lease out your investment, have full control of your investment unlike other forms of investment, earn full income on the investment even though financed by mortgagees or a bank .
It also allows you to make adjustment to improve the condition of the property in order to increase the income earning capacity of the investment without the need to consult the mortgagees unlike other forms of investment as well as the opportunity to enjoy numerous tax benefits, deductibles, savings and advantages if you live in a developed countries of the world.
I don’t like saying this but its true that parents who took advantage of some of these investment opportunities in the past now enjoy or have properties in choice locations and environment they would never be able to afford now if they want or need to. Many of them today find it difficult to meet up with the new development and modern construction codes in such locations but are happy and satisfied that they have a property sitting on such highly priced location.
Many had foresight and bought some landed properties for their children, they didn’t sit back or wait till they become adults or want to settle down in marriage with their husband or wife. These children today not only have a great start in life but are also more than greatful and are willing to pay ten folds of the purchase price for those properties because there are no such opportunities today even if there are it may not be in a choice location and environment.
I advice parents to help their children grow to be ideal investors and ensure that every step they take is directed to achieving goals especially investment goals, let them seek real estate investing knowledge and skill-set in their teens for them to seriously start thinking, learning and developing real estate investing strategies and plans even if they have no funds to finance one.
Ladies and women must consider challenging the erroneous belief that real estate investing is for men, living with your husband does not prevent you from investing in real estate and of course does not mean insecurity to the husband as we have in the past.
if you are wise, humble and sensible enough, although am quite aware of the fact that many African women suffered and could not make real estate investment because of their husband’s insecurity, ignorance and the empty quest of making their wives feel inferior, dependent on them as well as to have unnecessary full domineering control on their wives.
However, It is important for us to take this advice seriously if we desire a happy and satisfied future for ourselves and our family particularly on issue of supporting your wives and children morally and financially if you have the financial muscle to see their investment ideas and dreams come to fruition.
We must not because of fear and threat of the unexpected or uncertainties stop us from giving the much needed support and ladies to get such support from your husband requires great positive character, behaviour and attitude.
The aim of this post is to reveal some of the jealously guarded secrets of seasoned investors and real estate professionals on how to successfully invest in real estate and if you must know no experience investor make any investment decision on any property especially on properties intended for rental purposes, If the monthly estimated earning capability of the investment is not up to one percent of the actual purchase price of the property. If it is not up to one percent of the purchase price, as the seller all you see or hear is, please we shall be back and they will never show up again.
Experts come up with this figure and the actual maximum purchase price, that is what they can realistically pay for the property by ensuring their investment decisions are based on accurate estimates and often time with the presupposition that they will resell it almost immediately after the purchase as we usually have in a fix and flip investing strategy even though it is intended for rental purposes, simply put it seasoned real estate investors buy properties as if they want to sell it and wont allow emotion corrode their investing plans and strategies.
Another vital open but jealously guarded secrets by experts and I many see this on everyday but am dead sure that only a few have it on their conscious mind and understand why experts do this or see this as very vital to making investment decisions.
They always ensure that property investing decisions particularly on rental properties are targeted at all what can be used as the buyer’s or occupier’s package such as ensuring it is in propinquity to schools, recreational facilities, shopping complex, bus transit, gym, hotels and resort, beaches, public and private social amenities etc which will increase the number of potential buyers or prospective occupiers for the property.
Most successful real estate investors understand their investing strength and this is vital to the success of anyone who want to begin to invest in real estate to understand their investing strength by being honest and being true to themselves on their investing knowledge and skill-set.
They must know and understand what exactly their plans and strategies are and must also make realizable action plans to achieve their goals by seeking the much needed knowledge and skills from experience investors and of course must establish, build, maintain and sustain very good business relationship with key players in the industry as well as communicate and network with other real estate investors and professionals. This is what makes seasoned and experienced experts thick and seem flawless.
It might also interest you to know that seasoned investors unlike the regular or desperate investors protect their real estate investment against liabilities in so many ways, using different methods such as insurance and holding their properties in limited liability entity to protect against liabilities such as environmental and natural disaster, court judgment claimants, occupiers, and even creditor judgment claimants. They try as much as possible to create a healthy separation between them and their investment.
I must say that most successful investors that I know of are fond of investing for cash flow, they always hold on to great performing properties that has never seize or appreciate consistently and dispose poor performing properties to invest or reinvest in another researched or anticipated good investment property.
I have studied some investing strategies of some of the highly successful real estate investors over time and I discovered that they enjoy or love investing in locations and environments that are in close proximity to schools be it university or college and of course in areas where there are heavy economic or commercial activities are going on as we as in locations that is convenient, comfortable and can easily be accessed by everyone and anyone especially in a well known and develop locations.
However some also take advantage of no so developed communities people are just settling in with little or no commercial activities going on, these seasoned investors invest in these area to take advantage of being the one to start the development in such communities and control all the market before all others see the massive opportunities and advantages in such communities before showing interest in the market share.
Above all, newbies must gain or acquire the required knowledge and skill-set to successfully invest in real estate, you must screw up courage and have confidence in yourself to handle complex and complicated real estate transactions with little or no supervision.
And to do this you must read up, study and brush up on the state laws and Regulations guiding sales, purchase and lease of properties as well as understand property owners and occupiers relationship in lease agreement contract depending on the state you find yourself in.
I surmise many lack real estate investing experience, knowledge, willpower and good judgment and if you ask me they seem not to show interest in real estate investing and few that do are disappointed, frustrated and easily give up because of the mindset they have toward real estate investing from the on set.
They fail to understand that real estate investing is a long journey full of adventures, experience and something new to learn from but unfortunately this is what usually happen to desperate investors and if you must know experience or seasoned real estate investors are curious and take extra caution whenever and anytime they want to make real estate investment decisions.
They ensure there are no mistakes in arriving at the maximum purchase price for the property, no misjudgment of estimates of cash flow, income, returns on investment, operating expenses and perform their due diligence.
In fact if the estimated monthly rent to be collected on lease of the property is not in anyway realizing or has the capability to generating at least one percent of the actual purchase price then the investment is instinctively regarded as a bad investment by experts as far as real estate investing is concerned.
Finally, I would love to draw the curtain here today and let me seize this opportunity to wish Nigerians Happy Independence Day In Advance!
Lets give peace a chance Nigerians especially our Igbo brothers and sisters to explore other great alternative and diplomatic means of resolving our conflicts and disputes.
Best of Luck!
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