HOW TO MAKE A LOT OF MONEY VIA PENNY REAL ESTATE

It is a wonder how things strike us at times. Have you ever been in the mist of what you are looking for yet unable to find it? It has happened to me a lot of times and something similar happened again to me today. Heard the Yoruba adage before – what you are going to look for in Sokoto (Sokoto State) is in the pocket of your Sokoto (Trouser) pocket?

I just finished the pre-AGM meeting of one of our companies a few hours ago and while in the meeting my Chairman passed a comment referring to the kind of property dealings we presently do as penny real estate. That struck me like a thunderbolt because I’ve been looking for the word that will aptly describe what I do and with that, there can be no better explanation of what we do. We are indeed into PENNY REAL ESTATE. He couldn’t have been more correct. Buying into new towns or emerging new developments could be likening to your capital market investment in penny stocks.

They share the same characteristics of low purchase price as compared to others. Also, the potential for growth which necessarily results in handsome appreciation/capital gain/profit is huge.

To make money in any trade, you need to employ the best of strategies and what I am about to share with you here and now will open your world. To do this effectively I would like to tell one or two real/true life stories of what happened in less than 14months ago. Although for purposes of privacy the names and places are pseudos.

Now, read my tale:

We had a client who bought 24plots (that is 4acres) in one of the projects we launched 2006. He bought at N280,000/plot payable over 12months at the close of the introductory offer in February 2007. By March 2007 the a plot was going for N400,000 with a 6months payment period. That means, he could have made N120,000 in less than 1 month on a N23,333.33 investment if he so wished by cashing out in March.

By August of that same year, plots within the same project were now going for N600,000 each payable over 12months. As at that time, he had paid for 7months – N163,333.31 (August inclusive) and he could have worked away with N320,000 the next minute, if he wanted.

Now, this is the bomb, from February 1, 2008, the same plot now goes for N1,000,000 each payable over 12months. A 3bedroom on half of the plot sells for N5.5m. Hear this, our guy just completed his payment in January 2008 and he has N720,000.00/plot pure profit to himself.

If he wants to realise his profit fast and cash out, he could place his plots in the market at a net price of N750,000 per plot while the company sells theirs for N1.0m. What helps to ensure that he sells off before the company’s giving adequate and effective marketing campaign.

Imagine, netting a profit of N470,000 on a N280,000 investment in a little over a year. You don’t have to keep imaging, something like that happened.

Some investors sold their N280,000 February 2007 investment for N500,000 in September 2007 investing only a total of N163,333.31 at the time for an absolute profit of N220,000. That is 134% flat Return On Investment in 6-7months.

Once you buy a good penny real estate you are assured of a resale market. A case in point is the situation of one of our other client who had 10plots to sell off and the sales drag for over a month. But it was eventually cleared out in 2 weeks because value was being created on site persistently.

To make money FAST (within 12months) from Penny Real Estate, you need to do the following:

Ø Buy Pre-launch, Launch or an offer after that at the least. Otherwise, you will still make a lot of money on your investment but it won’t be as FAST as within 12months.

Ø Ask if you can be allowed to resell and the conditions attached before you commit your money.

Ø Understand the terms and conditions of the contract of sale and keep your side of the bargain. This is to ensure the promoter does not have any legal ground to prevent you from achieving your goal.

Ø Ensure you keep your evidences very well. That is, copy of the application form, copies of the deposit slips, receipts, letters, contract papers, survey, e.t.c

Ø Ask for and ensure you understand the promoter’s property transfer conditions and/or fees payable. So you can build it into your selling price.

Ø Determine your exit price, make findings about when the price may likely climb to that point

Ø Contract your selling team. Here, I will advise you go with an established reseller or do it yourself.

Ø Don’t be in a hurry to resell, make the most of this investment.

Ø When selling, sell lower than the company’s prevailing selling price o ensure you sell FAST.

Many new investors are lured to the appeal of penny stocks due to the low price and potential for rapid growth which may be as high as several hundred percent in a few days. Similarly, severe loss can occur and many penny stocks lose all of their value in the long term. Accordingly, the SEC warns that penny stocks are high risk investments and new investors should be aware of the risks involved. Such possibilities are there too for Penny Real Estate. These risks include Limited liquidity or out right illiquidity as a result of improper documentation, value not being created on site or inexperience on the part of the promoters. Fraud, if the promoter initiated the project with the mind to swindle subscribers.

You will need to get my previous article in this publication to better understand what you should look for when buying Penny Real Estate to prevent the points listed above.

The edge you have with PENNY REAL ESTATE unlike that of stock is that it seldom falls in value. It always appreciates and you need not watch any chart, pips or horoscope.

Next edition I promise to talk on the parameters that will continue to fuel huge returns in real estate investment in

Nigeria. Let no one deceive you, there is a lot of money to be made in this country. Stay in touch and we promise to take you through the little we know, have handled and are still handling.

Regards!

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Debo Adejana (www.deboadejana.com) is a real estate Entrepreneur and Conference Speaker. He is the MD/CEO of REALTY POINT LIMITED, the publishers of Prime Assets magazine. realtypointoffice@yahoo.com, 01-8964527, 4346687