“Ninety percent (90%) of all millionaires become so through owning real estate. More money has been made in Real Estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.”
The above quote is by Andrew Carnegie, a billionaire industrialist.
If you do not believe his words, it means you probably aren’t a millionaire yet, because almost all millionaires share the same belief, and that’s how they became millionaires in the first place.
But wait, before you go on to chew my head off because you own a million Naira and probably haven’t bought a single property or you know someone who owns a million Naira and has never invested in Real Estate; then I must tell you that I am actually referring to a million dollars. This is the standard currency of the world.
So, let’s calculate it. As at the time of writing this post, $1 million approximately equals N400 million. Now do you see what I am talking about? Try achieving that without Real Estate. Don’t get me wrong, I am not saying it is impossible, but try making a million dollars without Real Estate and let’s see how it goes for you.
By the way, if you do not know Andrew Carnegie (whose quote I mentioned above) or never read his books, I’ll suggest you go ahead to read The Gospel Of Wealth. Trust me, your perspective about building wealth will become broader.
Now, back to our conversation. Most people ask different questions about Real Estate and here are some of them – how do you make money with Real Estate? Or – isn’t it too difficult and expensive? Or still – what are various ways to invest in Real Estate?
Well, if you are among those looking for answers to these questions, then today you will find them in this post. However, before we get to it, let’s first talk about the importance of Real Estate.
Why is Real Estate Investing Important?
Real Estate provides better returns than the stock market with lesser volatility.
While the stock market may be a great way to build wealth, the truth remains that it is a very volatile market where you can win and lose all of a sudden. However, this is hardly the case with Real Estate. It is less volatile, more straightforward and gives you a massive return on your investment.
Real estate has a high tangible asset value.
Once you acquire a land (property), it becomes an asset (i.e, there will always be value on it). Unlike your car or even the stock market (please don’t misinterpret me, I have nothing against stocks, it is a great but yet vulnerable market), the value of your land keeps increasing and that means more money.
Make sure you get the best policy on your land so that it is insured even in the worst situation, thereby protecting its value.
Real estate value will always increase over time.
As earlier discussed in a couple of sentences above, the value on your property will always go up over time. This is one big factor that makes Real Estate a “must do” business for you.
Real Estate will diversify your portfolio.
Apart from the fact that Real Estate is an additional source of income which you must consider, it also has a variety of investment methods within it to enable you diversify your income portfolio. These different methods of Real Estate investment is the main purpose of this article and will be discussed next.
Ways To Invest In Real Estate
Investing in Real Estate can be done in a number of ways and while some have a very high barrier to entry, you don’t have to fret as there are others that have pretty low barriers to entry. Of course, this depends on your current financial status. To proceed, let’s take a look at a few Real Estate investment ideas right away.
House Flipping: involves buying a property, renovating it and putting it back in the market, therefore making profit from selling at a much-improved price.
Sublease: Lease out rooms of your rented apartment. You can decide to list your property on short let websites like Airbnb. One more thing, make sure your landlord is aware of this and allows you to go ahead renting out your space. Therefore, you must find a landlord who permits subleasing.
Buy-to-let: This is the process of buying a property and putting it up for rent. In this investment method, you will have to deal with different kinds of tenants (the good, the bad and the ugly) as such, you must know how to select them so as to avoid difficulties. Looking after yourself alone is already enough job.
Land purchase and sale: Rather than putting your money in the bank, this is a very quick and one of the best ways to get your money to appreciate as the value on you property increases, then you can sell it off. Keep in mind that before you make your land purchase, you must have every necessary document legally processed and presented to you.
Land purchase is a high-income business and will always generate a massive financial return for you. If you are interested in knowing more about this business model, you can start here.
As a beginner, the cost and process of buying or building your own property may seem outrageous to you. That’s fine because you are just starting out. However, that should not stop you from investing, the earlier you do, the better for you because Real Estate keeps going up.
With time, you will get a hang of it and understand it’s ins and outs. So, start building your investment portfolio now.
To make the process an easy one, start by having a WhatsApp conversation with us here.