5 Essential Features That Make Real Estate Investing Profitable

Every now and then persons trying to make up their minds where to put their money ask me if real estate ventures are more or less profitable, compared to other businesses opportunities around.

My response is always that apart from its potential for yielding significant profits, investing in real estate often confers long terms benefits.

I discuss five such advantages below:

1. You Can Refurbish (to Enhance the Value of) Real Estate
After you buy a stock, you hold it for a period of time and hopefully sell it for a profit. The success of the stock depends on company management and their corporate success, which is out of your control.

Unlike other conventional investment instruments, like stocks, for instance, whose rate of returns, depend on third parties (e.g. company management), real estate investments are directly under your control.

Even though you will not be able to control changes that may occur in demographic and economic aspects, or impact of nature induced changes, there are many other aspects that you can control, to boost the returns on your investment in it.

Examples include aspects relating to adding repairs, or improvements/enhancements to the physical property and tenants you allow to live in it.

If you do it right, the value of your investment will grow, resulting in increased wealth for you.

2. Real Estate Investing, When Done Right, is Proven to be Profitable Even During a Recession (like the one we’re in right now)
It has on several occasions, been used to effect a bail out, from financial setbacks, such as those that many have experienced during the economic downturn happening in Nigeria today.

A considerable number of clients have confided in me that due to the present economic situation, they are not sure of profitable channels to invest their money. Some of them are done with bonds and treasury bills, but are in dire need of a new investment.

We had extensive discussions, and based on my expertise as a real estate consultant, I recommended landed property investment, as the most suitable and secure alternative channel of investment.

This is because, even if all businesses crumble, land will always appreciate greatly. Then to drive my point home, I ended by sharing the following apt quote, by a former American president:

“Real estate can’t be lost, nor carried away, managed with reasonable care, it’s about the safest investment in the world” – Franklin Roosevelt.

Not surprisingly, the client chose to take my advice – and signed up: it was the obvious, common sense thing to do!

3. Real Estate Investments Are Immune to Inflation
In other words, investing your money in ownership of viable real estate can protect you from the harsh effects that inflation usually has on other conventional investments.

This is because the value of real estate generally tends to rise in positive correlation with inflationary pressures. This is why property values and rental rates go up with rising inflation.

The nature of real estate, therefore affords owners the unique advantage of being able to adjust the rates they offer, to match inflation.

Monthly rents for example can be raised to compensate for inflation – thus providing a cushion effect against inflation induced losses that other monetary investments suffer.

4. Real Estate is Uniquely for Being Universally Acceptable as Collateral, Towards Securing Funding from Banks
Today, real estate in form of either building or lands, with proper titles (i.e. Certificate of Occupancy – aka “C of O”) is the most recognized and accepted form of collateral in Nigeria – and some other parts of the world.

It has the unique feature of being able to protect the interests of both the borrower and the bank (that’s doing the lending), so that funds can be released i.e. after due verification, and terms and conditions are agreed.

This is one of the key advantages a private C of O has over the global C of O, because the former (i.e. private C of O) is what will be needed by the intending borrower, in the event of any future financial dealings with bank in Nigeria.

5. Real Estate Investing Allows Use of Other People’s Money
In other words, you can do it even if you do not have enough money. You just need to know how.

This is possible because real estate is physical property or what is called a hard asset. That is an attribute that makes it attractive to financiers i.e. people with money to invest.

This is why many times real estate products are bought with debt – unlike conventional investment products like stocks which are NOT tangible, and therefore perceived as being more risky to invest in.

So real estate investment can be done using cash or mortgage financing. In the latter case, payments can be so arranged to allow payment of low initial sums, provided by you or a willing third party.

Those payments will be happening on landed property which will continue increasing in value throughout the duration of such payments – and indeed beyond. That further inspires confidence in the minds of those financing the acquisition, that their investment is safe.

Little wonder that real estate investing has continued to prosper for so long!

[A WORD OF CAUTION] The listed benefits notwithstanding, I still tell prospective investors that due diligence is a crucial requirement for succeeding.

Whether you do everything yourself or use industry professionals like me, it is imperative that you exercise caution and arm yourself with relevant information and education.

This is something I advice my clients to do all the time, so they can make good decisions in investing.

The importance of the above cannot be overstated, especially in Lagos where quite a number of individuals, have had their fingers badly burnt, because they failed to take the needed precautions.

My purpose is to help clients avoid having such horrible experiences, by bringing my years of experience in this field to bear in serving them.

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Real Estate Investing LIES Unveiled

Let’s get REAL about something – and quelch the LIES you have been told about Real Estate Investing!­

What I am going to reveal to you are some basic
truths about Real Estate investing – truths that may
totally affect the Real Estate investments you have
now – and certainly I intend to modify the way you
do Real Estate investing in the future.

Let’s get right to it – and into the heart of the real
estate investing issue.

You have been programmed all your life to become
what you are today – from school, friends, relatives
and, yes, your parents.

Recent studies show that you are who you are now,
more from what you learned prior to age 8 than in
anything else you have learned since.

Now, that may surprise you, but it is true that what
you learned at the earliest ages affects the way you
make Real Estate investments today, and the type
of Real Estate investing success you will have going
forward!

Yes, that’s a bit shocking.

You see, if you grew up in an environment where
you heard things like

“We can’t afford it”, “Be sure
you have saved enough and have the cash to buy it”
(i.e., never use credit), or numerous other phrases
that you now hear yourself saying (you know what
I’m talking about – those times you catch yourself
“becoming your parents”), it is because of your
early programming (from 0-8 years) and what you
were told about money, success, and life in general.

That is controlling your current income – and your
success – or lack of it…

The things you were told at that early, most
influential age, are now creeping out and affecting
how successful you are in business, in life and yes,
in your Real Estate investing.

THERE IS GOOD NEWS

The greatest thing about this fact – as horrible as it
seems – is that you can change the ‘programming’ –
you have the power to do it!

You can reprogram yourself in any way you want –
have anything you want – do anything you want.

All it takes is simply to ‘reinstall’ the right kind of
thinking.

And, it is easier than you might think!

One of the best ways to do that is to get a CD audio
set from someone you like to listen to – someone
that thinks positively and speaks of the life you want
to live. Many home study courses are available (yes,
including mine) that are designed to inspire and
motivate you, while they teach you the methods and
secrets of real estate investing.

Purchase one – listen to it, over and over – until you
hear yourself speaking that way, too.

You see, we are all simply creatures of habit and
environment – if we allow junk to get into our heads,
all we will ever say is junk coming out.

If all you listen to is the bad stuff in life (like the TV
news, most ‘talk radio’ shows, those TV ‘real life’
shows that end up in fights – you know the ones.,
and even violent movies where the language is
nothing you’d ever expect to hear from your own
lips.), that is exactly what you will wind up sounding
like!

It is true – ‘you are what you eat’ – and that counts
just as much for what you put in your ears as it does
for what you put in your mouth!

If you spend your time around ‘bar people’, you’ll
speak and act like them. Not that there’s anything
wrong with that, as long as you made a conscious
thought that it is what you want, but I think you’d
be much more successful at Real Estate investing if
you were listening to a successful person teaching
you about Real Estate Investing!

Now, let’s get right to the point about the various
methods and concepts you have learned about Real
Estate Investing.

You may call yourself a ‘real estate investing expert’,
but if you have to get up every morning and wonder
where your next check is coming from, you aren’t
making real estate investments, you are being
employed in a Real Estate Investing JOB!

Yes, that’s a hard-hitting statement.

You see, I want you to ‘get real’ with yourself and
simply admit it – Real Estate investing is when you
put money into a Real Estate investment and then
get some money out – ‘real estate investing’
defined.

Yet, it seems that most people I meet want to
attend my real estate training or purchase my real
estate courses that have to do with ‘No Money
Down’ (NMD) real estate investing.

Now, that kind of talk just proves the point – you can
reprogram yourself to speak a different language –
even if it doesn’t make sense!

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