I have found the truth of the word that the ounce of example is worth a pound of precepts. Permit me to extract the essential principles of this particular conversation and to safeguard the privacy with this individual who'd also prefer his name not to be mentioned.
Rule 1: Have an excellent source of income. This specific real estate investor started several years ago just a couple of years after the independence of Nigeria by exporting certain agricultural produce. He poured himself into building this business and was later joined by a few other partners. The business enterprise flourished and provided him with the normal stream of income with which he started investing in real estate.
This real estate millionaire believes in work and entrepreneurship. He believes that most of the youths of today will do better if they figure out how to walk before wanting to fly. He believes that if you're willing to serve others faithfully within their business, you'll do wonderfully well in yours once you eventually start.
The lesson for people in that is that real estate investment requires seed capital and to possess those initial seed capital you must have earning power, you must have a means of income. You can't set up a great structure without a solid foundation. So,for several could be investors, first learn a skill or profession that'll allow you to get a job or begin a business as possible grow and that'll give you regular income.
Rule 2: Start saving and start investing in real estate in your own little way. Our real estate millionaire started by buying land in a location that has been a “jungle''but has become one of many commercial nerve centres of Lagos. He stated so it was not easy buying some of these properties then.He said he made buying real estate one of his true pastimes.
He did not start buying properties in the high brow areas of that time period while he could not afford them. In accordance with him, start what your location is and with that which you have. If all you could are able is a parcel of land in the outskirt of town by all means start there rather than not starting at all.
Rule 3: Its good to create and rent. This real estate millionaire began to create a number of his properties with desire to of letting them. Fortunately for him, as time continued ,he started to obtain understanding of construction and building development. This accelerated his building projects and his ability to communicate with builders and workmen saved him significant costs. He also started initially to allow buildings to tenants to generate income. As at today, his annual rental income is in millions of naira.
The lesson for aspiring real estate investors is to target on income-generating assets. When you have sorted out the issue of where you reside, you ought to continue building for others to rent from you and pay to you. Some real estate investors have an objective to create a specific number of houses using areas over a period of time using current and projected rent as a basis for planning.
This strategy can also be a form of retirement planning since rental income from such properties provide passive cash flow. Like our real estate millionaire, who is now an elderly man, but does not need to work to be able to pay for his cost of living.
Rule 4: In the event that you can't develop some properties by yourself, let them have to reliable developers.This real estate millionaire had some properties he could not afford to produce on his own as a result of multiple projects he was involved in. He gave a number of such properties to carefully selected developers he gave long leases to. Many of such properties have since reverted to his control and are actually giving him fantastic returns. In his thinking, it was better to include value to the land or allow someone else to include value to the land. As long as the properties aren't sold they'd eventually revert back to him or his beneficiaries.
Rule 5: once you do sell, reinvest all or part of the income in real estate. This real estate investor rarely sells his properties but when he does, he sometimes buys another property or uses the income to include value to a different property. He is comfortable and modest at the same time. He often has the next project or investment in sight before concluding the offer to sell.
He believes in moving his funds to raised and better real estate locations that provides in better rental income. As at today, a conservative estimate of his property assets is over N2billion.He started small,built his estate gradually but strategically and now he is reaping the reward.
Some locations suddenly became prime locations and transformed the value of his investment. His life proves that should you cast your bread on many waters you will find it and more someday or somewhere you least expect
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