Any group interested in investing can acquire these properties and immediately sell them for a substantial profit. Essentially, these three concepts have made more substantial cash returns unlike the traditional way.
Having said that, why isn’t Chamas’ creating wealth with real estate?
For many groups, it is fear; for others it is lack of capital. However, for most Chamas, it is merely a lack of understanding.
People buy and sell real estate with no money down all of the time, and real estate has always been a much safer investment than the stock market.
The first step is always information. Start gathering market information about real estate investments. As a Chama leader, you don’t need to be an expert, but you must understand the process. Find a realtor that works with investment properties and ask questions. Do the same for mortgage brokers and banks. Sit down with a loan officer or mortgage broker and determine how you would finance an investment. Ask questions and find real estate and finance professionals that can help protect your interests as you learn.
With the aid of the real estate professional, determine the best type of investment for your group’s financial position, risk profile and goals. After you determined best type of property to maximize your return, begin searching for your investment. For this, the internet has become an invaluable, time saving, tool. Search for potential investments at sites like propertykenya.com or Housing Finance of Kenya. In addition, you can look through any local paper, and call on the resources of your network to find the opportunity.
Valuing a potential investment is not as difficult as it may seem. For investors looking to receive a return for charging rents, evaluation software such as IP Ware aids in finding the maximum return on investment. For a group that is looking to renovate and re-sell, comparable values of the surrounding area can be a good foundation. Finally, for those that are looking for people that must sell at a substantial sacrifice, mortgage lenders, tax records, and financing groups can be a significant source of information.
Investing in real estate is a simple process. It is merely a matter of locating a potentially good investment. Determining how to best leverage that investment. Then using your resources and relationships to minimize your risk, and maximize your return. There is a myriad of resources available to beginning real estate investment. Isn’t it time you took advantage of the opportunities in real estate and started building your Chamas’ wealth?
This post was written by Anne Oyoo
Please Subscribe and get Notified when new articles are posted