https://lanrekarim.com/blog/2017/03/13/reic-014-to-succeed-in-real-estate-investing-you-need-a-competent-real-estate-expert-as-a-friend-true-story-a-pl

[REIC 014] TO SUCCEED IN REAL ESTATE INVESTING YOU NEED A COMPETENT REAL ESTATE EXPERT AS A FRIEND (TRUE STORY: A PLOT HE BOUGHT IN THE MIDDLE OF NOWHERE, MADE HIM A MILLIONAIRE!)

This article is based on a true story. Name have been changed for privacy reasons.

I narrate this story to challenge any persons nursing interest in Real Estate Investment:

1. Not to assume that it is not wise or profitable to purchase landed property in any areas that they do not see large numbers of people rushing into.
2. To make intelligent efforts to establish and nurture friendly relations with competent real estate professionals who are honest and reliable.

A.O. Olasoke was a Civil and Structural Engineer who ran his own consultancy based on over 20 years of experience working as a senior officer with the Ministry of Works.

His work had taken him across many states in the country, and had included construction of residential, as well as commercial building and road projects. During his time working with the government, A.O, as most of his colleagues called him, had seen a lot of signs that told him real estate investment was a sure way to grow wealthy.

The nature of work he did in building projects brought him into contact with surveyors and real estate experts, with whom he forged useful friendships.

Over time, they got so close that they visited with their families, and went on outings together.

During these visits, one thought kept nibbling at A. O’s mind. He could not help noticing that while he still lived in rented apartments, his real estate friends all owned the homes where they lived – and some owned other landed property.

He reasoned that this was partly due to the fact that while still working with the government, he was unable to settle down to get a place of his own.

But that was not the only problem.

There was also the issue of the amount of money needed to purchase the land and then build the house he wanted. All the conversations he’d had with his friends and the enquiries he’d made, revealed the amount was not something he could realistically aim to earn anytime soon.

In addition to the problem of limited funds, something even more discouraging was the fact that most of the places he would have loved to purchase properties, which were naturally close to where his friends were, carried considerably high price tags.

The places where he’d discovered more pocket friendly pricing of landed property that he could afford, fell in areas often completely undeveloped, and far removed from anything one could consider civilization.

He expressed his sentiments to a trusted real estate expert friend, Shina Shitta, expecting him to express agreement that such little developed areas were no good to invest in.

Instead Shina looked at him directly and said:

“Look A.O, I can tell you, from years of experience in this industry, that those areas you regard as bushes or jungles now, are destined to become choice destinations for real estate investors in a matters of years from now. My advice to you is that you get yourself a plot or two right now, and take your time to build on it. Before you are done with the roofing, you are likely to find other people, thinking like you, have also bought and begun developing their own plots in the area.

That’s what happened here, where I now live. When I first purchased this land, my wife thought I was crazy, to be buying what appeared at the time to be a land in the middle of nowhere. Today, you are eager to get land here, but you’ve discovered it’s too pricey, because everybody wants it. That is the nature of human beings. What matters most is for you to visualize the location of the area you have in mind, in relation to access to key infrastructure like roads, electricity etc.

As for your concern about having enough money, that should not really bother you. I say this because so many flexible payment options can be accessed with most of the developers offering landed property – and you can explore the option of even negotiating something that suits your unique needs.

The other thing is that mortgage facilities also exist, that you can take up, to enable you achieve your real estate investment goal without putting excessive financial pressure on yourself and your family.

I can give you pointers in that regard, once you are ready. You simply need to demonstrate the needed commitment and this will work for you.”

A.O did not sleep much that night. Shina’s words kept him up till about 3a.m as he reflected deeply on them.

He had a considerable amount he had saved up from his years of work, which he had always thought was still not enough to commence his real estate investing. But with Shina’s explanation he now felt reasonably assured that he could do it.

The next morning, a Saturday, he called Shina and told him he had some more questions. They decided to meet at the Tennis club.

By some accident of fate, John Asuku, Shina’s friend who worked with an agency that had landed property for sale in the undeveloped area A.O was looking at, stopped over to exchange pleasantries. Shina wasted no time in introducing them, and explaining what A.O wanted to do.

By the end of the new week, A.O had met with John in their office and gone ahead to do the needed inspection etc over the days that followed. Under the watchful experienced guidance of Shina, A.O was able to verify that all aspects of the deal were okay, before he made the purchase.

Next, they approached the MD of the Federal Mortgage bank, who was friends with Shina, from years of arranging facilities for the latter’s client and they soon agreed on one for A.O as well.

Two years later, A.O could not believe how well things had progressed. The new house was approaching completion and he was already making arrangements to move his family from their rented house to this new one. And A.O noticed that just like Shina had predicted, a few houses had begun springing up around the area.

Fast forward 20 years later, all of A.O’s kids had left home, having graduated from university.

He and his wife were now mostly living alone in their house. Once in a while the kids visited.

Some of them were now married and had kids of their own. But things had begun changing in the neighborhood. Companies had begun moving into the area, due to a major highway coming from the international airport, that now ran in front of the place.

A.O’s house was right along that road – and that made it a target for the banks in particular. Most of them were implementing aggressive expansion plans and their teams were approaching the owners of houses along that route.

They soon began pestering him to sell to them. Initially he resisted, arguing that he preferred living in the area. But soon he noticed that most of his friends had sold theirs for handsome amounts and simply purchased smaller homes elsewhere, he realized it would be wise to do the same thing.

Luckily for him, 3 banks were bidding for his attention. Once again, with expert guidance from Shina, and one of his kids who worked with a big bank and had inside knowledge about options he could request, he was able to sign a good deal that enabled him negotiate a profitable sum over N20m higher than his friends who had sold earlier got.

Today, A.O lives comfortably in retirement, not needing to worry about money issues like he used to.

Not only did he buy a brand new house in a serene estate, but he also bought himself a brand new car, to replace his old and worn out jalopy. Despite collecting rent from letting out one side of that old house, he’d not been making enough money, as a semi-retired engineer, to maintain the house, car etc. The sale of the house gave him a new lease of life!

He could not help feeling grateful for knowing Shina, a real estate expert with integrity, who had guided him to make the most of the investment opportunities available in the market, at the right time.

This story illustrates the power of having reliable access to the right real estate expert, in pursuing your dream of achieving your real estate investment dream.

Without Shina, most of the steps A.O took over the years would have been done mostly on a trial and error basis, and he would probably have ended up getting his fingers burnt.

This is why I offer myself through www.lanrekarim.com to become your trusted guide as you navigate the potentially turbulent waters of this industry. Take nothing for granted. Learn from someone who knows what it takes, and who has helped many others like you, for years.

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