5 Ways On How To Finance Your Real Estate Investment Plans
Yes! Your heart-most desire is to definitely own a land and possibly invest more in real estate.
In Nigeria, people mostly believe that it requires a lot of money or capital to invest in real estate while this is somehow true there are ways on how you can fund or get finance to own land and invest in real estate investment plans
Real Estate Investment Trusts (REITs)
A real estate investment trust (REIT) is a company that owns, and in most cases operates, income-producing real estate. REITs own many types of commercial real estate, ranging from office and apartment buildings to warehouses, hospitals, shopping centers, hotels and timberlands.
REITs engage in financing real estate.
I think most Nigerians do not know about the Real Estate Investment Trusts (REITs).
REIT has been found to come with a lot of benefits. One of its role of portfolio diversification, as real estate investment offers an alternative to equities and fixed income securities, especially for investors interested in diversification.
Liquidity is also another benefit derived from REITs as it makes for relatively liquid assets (when compared to direct investment in real estate) that can be sold fairly quickly to raise cash or to take advantage of other investment opportunities.
Much like regular dividend-paying stocks, REITs are a solid investment for stock market
Investors that want regular income. REITs also allow investors into non-residential investments such as malls or office buildings and are highly liquid. In other words, you won’t need a realtor to help you cash out your investment.
To know more about REIT Read: What You Should Know About Real Estate Investment Trust
Friends and Family
Here is another means in which you can get to finance your real estate investment plan.
This is through families, friends, colleagues and people within your locale.
Teaming up with this set of people is a good plan to achieve your real estate investment plans.
With this way to finance your real estate investment plan, your families and friends raised money with the purpose to also earn from you bringing up a plan of investing in real estate and of course they will want a return of investment.
With this advantage, if thereby things didn’t go well as plan after they have raised some money it could place relationships on sore and affect trusts.
I can also place this with family and friends but I didn’t do that because there are real investors who so much believe in investing their money in real estate to yield profits.
These real investors are wealthy individual or groups that like to invest in business.
They can be politicians, foreign base friends, Oil company workers and many more you could think off.
I tell you that most of these people earn a lot and still don’t know where to invest their money on and this is where you play the role as a business person in presenting your plans on how to finance your real estate investment plans.
And sure most real investors love to hear about real estate investment plans but mind you because they are business investors you need to present to them how they can generate their own profit when finance or invest in real estate.
A Real Estate Joint Venture (JV) plays a crucial role to finance your real estate investment plans in the development and financing of most large real estate projects.
A joint venture is a business arrangement in which two or more parties agree to combine their resources in order to accomplish a specific task.
You can finance your real estate investment plans by doing a joint venture with a group of company or friends.
To do this, there must be a documented agreement between you and whoever you are partnering with in case of money or suit issues arises.
The key aspect of real estate JV agreement are Distribution of profits, Capital contribution, Management and control and Exit mechanism
Marketing for Real Estate Companies
Another way you can finance your real estate investment plans partnering or marketing for real estate companies around you.
I have seen most real estate agents do this yet it is not a common thing but sure deal is a good one to start with to finance your real estate investment plans
How do you do this? Just talk to reliable real estate companies, market their products and when you sell use your commission from the sale to invest in one of their estate or other estate.
From there you are already financing your own real estate investment plans.
In conclusion, with all this highlighted here you can pick any one which can work for you. I hope you enjoyed it and thanks for sharing.