Skip to main content

HARD LESSONS FROM A PROPERTY INVESTOR: READ, DON’T FALL VICTIM – Ken Egedi


A few years ago I was contacted by a Client, a friend, he had envisioned a property portfolio that would deliver superior returns of about N5M (Five Million Naira) monthly on the strength of a planned stock of properties all year-long. It was a bold look into the future for an enterprising young man who was only 30 at the time!

Property Portfolio 
Because he was a member of Corporate Nigeria all he had to do was to speak with banks who were awash with liquid cash at the time to fund his vision; so he set sail. He assembled a team; in the team were architects, civil engineers, mechanical and electrical engineers, quantity surveyors, etc., the team was “tight”. They worked hard to deliver brilliant properties that dotted Lagos.

Then I asked him, “Bros, how do you intend to manage these properties?” While he stared hard at me processing an answer from his brain, I carried on with another question, “You know there is a lot of relationship management involved with the kind of earning the type of cash in what is being projected? This money is not a grant or “free money”, it is borrowed funds of depositors at the bank”. But he allowed his eyes to stray to the window at fast moving cars and then fixed them on me before responding, “Ken, watch me”. At that point I believed my friend actually knew what he was doing.

Fast forward 7 years and there is a lot of yelling, tenants in the buildings are defaulting on payments, there are pipes sipping out water, septic tanks are full and spilling out without adequate plans for dislodgement, banks are on his case especially and the list goes on and on!

To be fair he had a plan or so it seemed but there was one thing he didn’t factor into it – A Property Manager! Most people have probably heard these words but never made it to getting off the ground or how to use it as strategy. In short, the Property Manager is the one who “baby sits” a property investment.

Hmmm, but is it not ironic the way people say that history repeats itself? And at perhaps shorter and shorter intervals. Yes, it does, because people do not like to take the lessons of history to heart. I told the gentleman at the time about Property Managers and what their responsibilities are but it was not to be.

So if you are reading this you’ll be pardoned if you did not know about Property Managers and their responsibilities after now you won’t be.


Allow me to introduce Rullion Associates Limited, a creative Property Management and Business Advisory Company. Forged with years of experience and inside industry knowledge, Rullion is able to work within concepts, provide budgeting, sales and collections within the Real Estate landscape.

 Rullion Associates Limited ... The New Way
08033615098

Comments

Post a Comment

Popular posts from this blog

UPDC’s REIT Floats N30 billion Offering

UPDC Real Estate Investment Trust (REIT) has completed arrangements to raise N30 billion by way of offering of 3,000,000,000 units of N10 each at par. The REIT, is sponsored by UACN Property Development Company Plc. The floating of the offer, which is to commence on February 19 20123 was preceded by a completion board meeting held in Lagos on Tuesday, where the bank and all the financial advisers to the offer signed the necessary documents. The Chairman UPDC Plc, Larry Ephraim Ettah  said the offer which closes on March 28, 2013 is payable in full on application. He explained that the REIT is a closed ended one, adding that the units of the REIT  would be traded only through a licensed stockbroker once the offer is concluded. Ettah, while fielding questions from journalists explained that the company has huge projects waiting for execution, adding that the proceeds from the offer would be channeled on the projects. According to him, the REIT will invest primarily in a ...
Post a Comment
Read more

Common Mistakes Of New Real Estate Investors

Many people are convinced about the soundness of real estate investment as a wealth-building vehicle but most are not clear as to the path to follow and the pitfalls to avoid. More recently, I have had reason to clarify to aspiring real estate investors that real estate investment is not a get-rich-quick system. It is a system that requires knowledge, dedication and focus. We shall examine a few mistakes to avoid if you desire to effectively utilise this wealth building vehicle. One of the basic errors new real estate investors make is to buy properties blindly on the assumption that all real estate investments automatically go up. This common assumption is not true in its entirety. For instance, if you decide to buy a property in an odd part of town without considering basic infrastructures or basic advantages, and then you go ahead and develop the property, you may experience a high vacancy ratio (this means, it takes an unduly long time to rent the property to tenants) or it m...
Post a Comment
Read more

Entrepreneurs should invest in real estate – Expert

An expert in the property market has described the real estate market as an investors’ haven, adding that the industry holds great potential for operators in the country. Speaking on the theme: ‘Growing a diversified group of businesses’ at the Fidelity SME Forum, a weekly radio programme being packaged by Fidelity Bank Plc, the Chairman/Chief Executive Officer, Genesis Group of Companies, Chief Nnaeto Orazulike, said the property business was one area where investors could expect to recoup their investment within a short period of time because of the high return on investment. He advised Small and Medium Scale Entrepreneurs desirous of growing their businesses to make conscious efforts to tap into the huge property market in the country even as they ploughed back the excess funds into their businesses. “Naturally, as you grow your business and develop it, the best thing to do with the excess, which the business doesn’t absorb is to invest it in real estate,” h...
Post a Comment
Read more