The purchase option is the common and readily available option for climbing the real estate ladder. It is also the option that exposes investors more to loss of money, sometimes loss of lives. As some people never recover from the shock of learning that what they bought does not exist and from the fact that they have fallen victim to scams. Therefore having a definitive guide that helps you make the most of real estate purchases is sacrosanct.
The real estate purchase option is also believed by a layman to be a low-risk investment option. Especially because of the tangible nature of real estate – it can be felt, it is immovable and it does not need to be fed. Therefore, every offer becomes appealing especially those that have a similitude of the plug and play feature.
For instance, if a real estate offer says buy a plot of land in Epe for N250,000.00 and enjoy 700% appreciation value. It is easy to think that you should plug in N250,000.00 to buy a plot of land and wait for the expected appreciation when visible economic development increases in Epe in 10 years. This also sounds like you do not have to worry about your investment in the plot until you are ready to sell.
It is okay to invest in real estate that you do not need to tend to like a little child. Although, some factors make up for having such a worry and tending activity free investment in real estate while also securing the future anticipated value that you intend to realize from the investment. These factors absorb shocks about your investment when that future comes. The pain of losing a piece of real estate that you bought using cash realized from your labour or sacrifices is not one that you want to go through. And sometimes, the loss is not limited to cash only.
So what are these factors that you must consider before buying a piece of real estate? The factors that at least guarantee to some extent that you will not be in for a shock when you wish to take profit? These factors will be explained in detail in a 10 part series. When you consider these factors, you will have been able to achieve the following;
Articulate your real estate goal so that it is easy to hit your target.
Prepare yourself by at least 20% for your next purchase. Buying real estate blindly or without sufficient knowledge and preparation is a sure recipe for a loss.
Prevent buying a piece of real estate that may not add value to you. Far too many people buy land or houses that quickly become a liability instead of an asset. Do not pull on a weight that erodes your net worth.
Identify with good reasons the professionals that would work with you on achieving your goal. Regardless of the size of the real estate that you are considering or the company that you wish to buy from. You need great professionals to watch your back while you are still in charge of your purchase.
Put in perspective how subscribing to an offer affects your finance/cash flow and how to cut losses.
There are many real estate companies and individuals with various land or home deals. It is easy for you to choose a deal based on social reviews, the beautiful media adverts, what someone you know or defer to says about a company. Although, this is not sufficient enough data for decision making. Yet again, attempting to conduct thorough due diligence on each offering will be a tall order. You will be setting yourself up for premium frustration. You may end up spending half if not all of your capital on the exercise.
So should you not conduct due diligence before investing? Of course, you should. It is the wise and best thing to do even when a company or individual comes highly recommended. An important thing to also note is that real estate due diligence means different things to different people. Therefore, as a smart investor, you want to be clear on due diligence deliverables and also engage professionals that can deliver unbiased research.
It is okay to read social proof about real estate offers but it is not enough. It is okay to ask about an estate or an offer from people. But you don’t want to ask only from those who are affiliated with the offer. Neither do you want to ask only from those who hold an unfounded bias for or against the estate or location. Don’t be a victim of bias. This is why the points discussed in this series are important. The series will present to you simple yet actionable and effective tips to quickly scrutinize and decide real estate offers that you should buy.
Consider this series an independent guide in your favour. It does not have any specific real estate vendor, developer or estate in focus. The focus of this series is you – a real estate investor who is smart about investing in real estate to get the best out of real estate.
Oluwakemi Adeyemo is a highly sought Real Estate Investment Advisor and Coach. The expert who help investors to make more money in real estate. She believes that real estate is designed to sustain human existence and is the bedrock of wealth creation. Her job is to get to know your investment goals and provide you with expert yet relevant analyses on real estate investment options.
She has helped investors save more than ₦450,000,000 that would have been lost in real estate. She has also assisted to source vantage properties for businesses and individuals within record time. Closed transactions well over ₦1,200,000,000.00 and counting.
She researches a lot and scrutinizes real estate investments so you don’t have to. She helps institutional investors analyze investments and optimize profit in real estate. Her skill and expertise help individual investors understand better the concept of real estate, prevent regrettable mistakes and boost investor confidence. She is also an Author and Column contributor in Businessday Newspaper, BellaNaija and Nairametrics.