Real estate investing is said to be a playing ground for the rich. The truth is that most successful Investors started with little and have achieved success. Today Real estate have produced over 80% of world millionaires but at the same time, a good number of people have lost their hard earned money, while few others have invested in properties with very slow Returns On Investment (ROI) because they failed to ask the right question, before going into the venture.
Whether you are investing in stocks, bond, mutual fund, crypto currency, foreign currency trading, or real estate, The golden rule is “never invest in what you don’t understand ”
My name is Anthony Cee, I am a real estate expert, dedicated to helping investors maintain maximum profit while investing in real estate.
Today I want to help you with the 5 MOST IMPORTANT QUESTIONS YOU MUST ASK before leaving your signature on that deal:
I decided to write this article after a couple of meetings with some real estate investors. These series of meetings revealed that a lot of people come into real estate as gamblers rather than investors. They neither have business plans nor investment strategies.
With this I present to you the 5 most important questions you must ask and make sure you got the answers right before putting your signature on that deal
Some af them are questions you must ask yourself personally
1. What Do I Want To Achieve With My Investment Portfolio?
Before you ever initiate the search for a property, you must come up with a conclusion on what you want to achieve with the property you are looking for. This will help you define the type of property to look for-
- Are you looking for a home for yourself and family close to your work place?
- Are you looking for Cash Flow or Capital gain on your property?
- Do you just want to be a landlord?
It’s unfortunate that so many people treat real estate investing as a gamble, however deciding what you want to achieve will help you create a smart real estate business plan, which will guide you in making decisions that maximizes profit.
2. What Location is best for my investment?
Once you have concluded on what you want to achieve with your investment, the next thing you will start thinking about is location. The purpose of investment will determine location and location will determine your returns on investment (ROI).
For instance, if you are looking for Cashflow, you definitely won’t go around Free trade zone, and if you are looking for Capital Gain, you definitely will avoid Ikeja and if you are looking for Agricultural land, you definitely won’t go to Lekki and ikoyi
It’s funny when some baby investors come to me and say – “I want to buy a land that is close to my home town for investment purpose” of course it’s awesome to buy property even in your hometown but it must depends on your reason. for Investing
If you are buying a property just to provide a comfortable accommodation for your family and you want them close to their relatives, or you are investing for agricultural purpose and have a ready market, then buying property from your village will be a great option but it’s not always a smart investment especially if it’s your first investment. Except your village is a fully blown or fast developing City with opportunities.
Recomended for new Investors – HOW TO OPTIMIZE PROFIT WHILE INVESTING IN REAL ESTATE – WHAT THE RICH DO
I understand that why most people wants to invest close to the town of their origin is because they believe it’s risky to invest in upcoming cities far away from home. This is usually because they don’t know how to carry out due diligence or they just believe in playing it safe. So they run away from opportunity in upcoming cities, running to the safety of their home town. This is exactly same reason why many people lost the opportunity of the defunct Maroko now Lekki phase 1. The story of Ebuka is a typical example. Ebuka’s story was told in — Where will my investment in real estate be profitable?
Understanding the location most suitable for your investment purpose and ability to tap into that location can change your story. My mentor would always tell me “Tony location is key” Smart Investors are able to calculate their returns on investment using data and statistics before putting there money to work.
Best locations guarantees fastest returns on investment if the investing is done right..
Note – Location correlates highly with purpose of investment, and it’s highly advised that you seek for expert guidance on best location for your real estate investing that fits your budget and maximizes your purpose of investing.
3. When Will I Get A 100% Returns on my Investment (ROI)?
This is always the litmus paper test for a good location and every smart investor ask this question. This also means that it’s smart to decide how long you are going to hold this property and your exit strategy before commiting your money because real estate is not as volatile as stock that can be liquidated at the tap of a finger
- Do you want a generational investment?
- A rental income for 25 years?
- Buy and sell after 10 years?
- buy and develop after 5 years
- Fix and flip?
- A property for Agricultural business
- Commercial property for fuel station, hotel etc
Remember that the speed of returns is equals to location plus purpose.
Speed = Location+purpose
Always look for the best locations within your budget that serves your investment purpose to maximize returns.
4. Get information on the receptiveness of locals —
Of course, the essence of Real estate investing is to make profit. To maximize returns on investment. But how can you maximize returns when there is too much trouble coming from the the indigenous people of the land? So it is very important to understand the behavior of the locals before investing in that beautiful location you just discovered especially in upcoming areas.
A lot of people have resolved to buy only ready made homes to escape the problem of Omonile and other local encumbrances, community brouhaha and illegal levies. Unfortunately most developers have taken advantage to double the actual cost of the ready made homes despite the fact that most of this houses are built with substandard materials.
Probably someday everyone might become a developer. Right? But you need to learn Investing first because it’s deeper than it looks on the surface
Being able to cope with the challenges of most localities across Nigeria is what Smart Investors do. A Comprehensive due diligence must be done by anyone who do not want to be spending their hard earned money unnecessarily.
See this also — SHOULD I BUY MY LAND FROM AN OMONILE OR A REAL ESTATE COMPANY?
Developers are successful because they study the behaviors of the communities where they intend to invest and know how to minimize their influence legitimately without unnecessary spendings
Of course every village have their own share of radicality, especially the fast developing regions nevertheless the real estate industry continues to thrive and blosom.
Therefore as an investor who wants to attain financial freedom using real estate as a vehicle, you must understand the behavior of any locality you would love to invest in and know how to minimize their influence.
5.Verify The Title And Perfect Your Document
Once you’ve been clarified of the number 1 to 4 above and you’ve finally decided to buy that property, the next thing you are going to be doing is verifying the title and once the title is confirmed, and you make your payment, go ahead to perfect your documents and don’t push it into the future. It’s super important to Perfect your documents immediately to secure your property.
To learn more on land titles and documents, read — Land titles and documents that secure my property in Nigeria
The importance of verifying titles and documents on property can never be over-emphasized. Always insist on buying only properties with verifiable titles especially if you are buying properties in Lagos and no matter what company or individual you are buying from.
To verify any property title, get the land coordinates and visit the land registry in your state.
Always insist on making every deal safe and profitable by asking the five questions listed above before venturing into any investment. And most importantly, make sure you buy right!
Do you have a question? Or would you love us to help you in perfecting your documents or in securing an investment that guarantees fast returns and peace of mind. Chat me up using the WhatsApp button bellow or call me using the Call Now button at the end of the article
My name is Anthony Cee and I am an expert dedicated to helping you maintain maximum profit while investing in real estate. I also help you in managing properties to maximize cash flow… Learn more
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