How to build a real estate empire with a small budget
By now, it’s no secret that real estate should hold to potential to make you wealthy if it is the cornerstone of your investment portfolio. There are many benefits to owning real estate. Those benefits include the ability to use leverage to enhance your return, a steady stream of cash flows in the form of rental payments, and the ability to acquire real estate under market value. With all those benefits, there are very few reasons why you shouldn’t explore putting money in real estate.
However, several people see real estate investing as a capital-intensive form of investing hence they tend to stay away from it but we’re here to debunk that belief.
First of all, the key to building anything is to take the first step. For many, this is the hardest part and the reason why they will never be able to buy even one property let alone accumulate a real estate empire. If you want to build a real estate empire, you need to have the mindset of going ahead with it. It is very important to take that first step!
Step 1: Get Educated
In order to be successful, especially with no prior real estate experience, you need to get educated about real estate. To do this, yo can subscrube to our newsletter where you can get access to high quality educational materials which will provide you with the basics about a number of real estate investment topics. Without the educational foundation, it would be hard for you to feel a level of comfort to pull the trigger.
Feeling comfortable is important. Think about being in a new neighborhood for the first time, such as while on vacation. You would be more wary of the environment and your surroundings given that it is new to you. Compare that feeling to being around the neighborhood you grew up in or have been living in for the past 5 years. You have a better sense of safety and comfort given your familiarity with the neighborhood.
Education in real estate provides you with a higher level of comfort. A higher level of comfort should result in the ability to make a decisive decision which should, hopefully, lead to action.
Step 2: Source the Property
Armed with education, the next step for you is to search for a property to buy. Given your limited funds, it is important to look for a location which is at the right price range and has the potential to return a high yield. Your research is likely gong to take you to locations such as Ibeju Lekki, Epe, Ikorodu, Ibadan, Abuja amongst others.
However, it was important for the property to be within driving distance from developing industries that would shoot up the value of the property once they become fully operational. Two regions that fit this bill include Ibeju Lekki and Epe. You can take a look at our available estates in these regions to determine which one fits your bill.
2. Doux Gardens
3. Windspring
Step 3: Purchase the Property
Once you have decided on which property to buy, the prices for a full plot of land can be off putting but do not fret; you can start with a half plot of land. Contraty to popular opinion, a half plot of land is more than enough to start a real estate empire (Listen: What can be built on a half plot of land). However, you can start with a full plot of land on any of our estates which is still relatively affordable.
He put in all-cash offers on a number of properties – at amounts lower than the listing prices. Now remember, the listing price for a property at this point in time in 2009 was already a lot lower than the peak price. But of course, when starting out with limited funds, you have to try to preserve as much of your capital as possible.
Step 4: The Waiting period
After you have purchased your first piece of land, you can either decide to leave it for years and resell at a massive profit or you resell after 2 to 3 years in order to reinvest in other properties.
Whichever your choice is, it is important to keep on buying more properties as time goes on. However, if you do not have the capital to continuosly add properties to your portfolio, the solution is straightforward which brings us to step 5.
Step 5: Become an independent realtor
If you work as a realtor with Danbel Properties and Investments Limited, you can earn up to 15% commission. This additional source of income will allow you to produce more revenue to devote completely to growing your real estate business. Being a realtor is appealing since it does not need you to quit your day job or devote 8 hours per day to it; all you need to know is how to network with the proper consumers.
If you follow these methods carefully, you might build a real estate empire worth hundreds of millions of naira in 15 years. To get started, give us a call right now.
