Inflation is at all time high, which was why it was a big relief to our investors when In early February of 2023, all road led to Lekki Phase 1 where we launched our project, Number 31.
Number 31 is located just behind The Monarch event centre, very close to Oba Elegushi Palace, minutes away from Freedom Way.
It consist of multiple units of ultra-modern and beautifully finished 4 bedroom terraced duplex houses.
Immediately after launch we started selling units of these 4 bed terraced duplex for just NGN 135 Million off-plan.
One of our clients, Mr Mike ( not his real name. Real name withheld for confidentiality purposes).
Mr Mike with his eagle like keen eyes for spotting opportunities and sheer ruthlessness in taking action once he has spotted the right opportunity saw that our project was selling way below the market price and acquired 2 units of Number 31 off-plan.
Now when I say that he acquired two units of Number 31 you will be forgiven if you start thinking that Mr Mike is a multi-billionaire, the caliber of Tony Elumelu, Mike Adenuga or the evergreen Otedola.
On the contrary he is just a businessman.
A successful business man sure, but not a multi-billionaire with more money than he knows what to do with like the people I mentioned above.
As a matter of fact, when I was talking with him early this year.
He said that that acquisition was one of the hardest things he did financially in 2023.
He confided in me that that same 2023 that he made that acquisition, he was repaying a business loan from a bank that had matured and he was in the middle of expanding his business operations and offices.
A bit shocked I asked him why he went ahead and acquired not 1 but 2 units of Number 31 despite his almost full financial table.
With a confident smile of a master at his game he looked at me and without hesitation said, “You should know me by now Ugochukwu, anywhere I see opportunity, I seize it with my two hands.”
Mr Mike acquired 2 units of Number 31 at N130 Million each( We gave him a N5 Million discount) In total he paid N260 Million.
We gave him a 12 months payment plan to enable him pay conveniently.
Amidst the rising inflation, how has that investment worked out for him so far?
Today Number 31 is 90% complete and the same units Mr Mike acquired for ₦130 Million each are currently selling for ₦225 Million a unit.
His ₦260 Million investment is now worth ₦450 Million.
A capital gain of ₦190 Million in just a year.
But that is just a tip of the iceberg.
The most lucrative thing about this investment is that the market value of 4 bed terrace duplex in that axis is between ₦260 million to ₦290 million.
Upon completion and handover Mr Mike will be reselling for nothing less than ₦250 Million per unit.
Yes! Mr Mike has no plans of ever living inside the property.
His strategy is simple; buy a property off-plan below market price, and once the construction is complete and the house ready, resell at the market value.
Mr Mike belong to a small group of individuals who are passively making hundreds of millions of Naira annually investing in real estate. Inflation got nothing on them.
How are they doing this? What is their secret strategy?
The truth is that there is nothing complicated about their strategy.
It is something you yourself can easily learn and implement.
They buy properties off-plan when they are selling below the market value and resell the property upon completion at the market value.
To buy a property off-plan simply means to buy it while it is still in the construction stage.
Why buy a property off-plan?
Why buy a house that is still under construction?
Buying a property off-plan gives you the opportunity to buy the property way below the market value.
Off-plan purchases also offer you flexible payments options usually spread over the construction period.
This allows you to manage your finances more effectively, as these payment schedules involve a smaller initial deposits followed by a payment plan that can be spread for up to 12 months or can be paid based on construction milestones achieved.
Buying a house off-plan is one of the smartest thing you can do when investing in real estate, because you will be getting the property way below its market price and you still get the opportunity to spread your payment for a period of time if you so wish.
For example I told you that 4 bed terrace duplex at Number 31 started selling off-plan at ₦135 Million.
While finished and completed 4 bed terrace duplex with the same features and in the same location as Number 31 are selling for ₦260- ₦290 Million.
So we offered Number 31 at 50% below market value.
Why are off-plan properties priced lower than ready properties?
It is a way for the developers of these properties to raise money to finish the project and move on to a bigger project without wasting time.
Without selling some units of their project off-plan, they would be forced to wait till the entire project has been finished and sold before they can move onto their next project.
But by selling some units off-plan, they get much needed funds to finish their current project and move on to the next project even if their last project is not 100% sold out.
Much like importers who sell their goods in dozens of cartons at a much cheaper rate than what they would have sold if they sold the products piece by piece.
By selling at a much cheaper rate they encourage wholesalers to buy hundreds of cartons.
This way they sell out fast and raise money to import another shipment.
Real estate is a very cash intensive business. To encourage subscribers and investors to key into their project off-plan, they offer it way below the market value.
This is why off-plan properties are priced lower than ready properties.
So when people like Mr Mike acquire these properties off-plan, they wait and once these properties are completed and handed over to them.
They do one of two things, either they put the property back in the market at the current price thus cash in on their capital gain
OR
They let the property out annually or even use it for shotlet business.
This allows them to make money passively from the property to sponsor their vacations, children school fees and their luxe lifestyle while the property appreciates more in value.
Or alternatively invest back into real estate.
The Anatomy of how Mr Mike and the very few real estate investors like him who are investing in real estate by acquiring off-plan properties are making 3X more money and within a shorter period of time than other property investors.
As a kid growing up, one of my favourite TV shows was Tom and Jerry. I could watch it all night without sleeping.
Maybe unlike me you never watched Tom and Jerry or you did but have forgotten about it, so permit me to refresh your memory.
Tom is a rather stupid cat and Jerry is a very cunning mouse that never runs out of new ways to annoy Tom.
I still remember clearly a particular episode.
One house had a problem with Jerry who kept stealing food from all over the house so they called Tom to exterminate the mouse, Jerry.
Tom brought a poisoned cheese, a hammer, a trap, even a small cannon.
Thinking about that now it reminds me of something.
There is so many ways to kill a rat or in the case of Tom and Jerry, a mouse.
Same thing applies in real estate. There are so many ways to invest in real estate.
You may have heard many people telling you to buy land here, buy land there.
Buy at Ibeju-Lekki, buy at Epe. Which is perfect because Ibeju-Lekki and Epe are the two best locations to buy land now.
However what these people don’t tell you is that your land investment in Epe might take 10 to 15 years to mature.
What they don’t tell you is that you need to give any land you have at Ibeju-Lekki 3 to 5 years to mature before you can sell it profitably.
Why wait decades to build wealth investing in real estate by buying land when you can achieve the same result in just a few years of buying off-plan properties below their market price and reselling them at their full market price upon completion?
Mr Mike invested ₦260 Million in February of 2023 when he acquired 2 units of 4 bed terrace at Number 31.
As am writing this in March of 2024, his ₦260 million investment is now worth ₦450 Million because the units he bought for ₦130 Million each is currently selling for ₦225 Million each.
These same units are projected to be selling for nothing less than ₦250 Million each upon completion.
Same units with exact features in same location are currently selling for ₦260 Million and above.
Number 31 will be finished and ready before the end of June, 2024. Let’s say it takes him 2–3 months to resell. Worst case scenario.
The whole investment timeline is not more than 18 Months and he will walk away with ₦500 Million.
While you are waiting for 2040 for your land in Epe to finally appreciate enough for you to resell, one businessman you are richer and more intelligent than would have turned ₦260 Million to ₦500 Million in just 18 months.
Knowing Mr Mike he will take the whole money and just invest in another off-plan project, to resell upon completion.
How much do you think that ₦500 Million capital will be in 5 years of him doing this?
How about in 10 years?
This is the little known, hyperinflation-proof new real estate investment strategy affluent Nigerians like you are using to live like kings and at the same time printing multi-generational wealth.
That other real estate investors will never tell you and greedy real estate developers desperately don’t want you to ever find out.
I told you that their strategy is nothing too hard or complicated. It is something you yourself can implement.
They just key into good off-plan projects which of course is selling below market price, and resell upon completion then buy another and repeat the whole process again.
Talking about off-plan projects.
If you are looking for the perfect off-plan project in Lekki, Lagos that guarantees over 50% ROI upon completion like Number 31 and will be delivered within the next 10 months.
We just launched a new project and we are giving investors like you the opportunity to buy off-plan.
Please note that we have limited units available for off-plan sales.
Click on the button below to send us a message on WhatsApp because we just launched a new off-plan project.
We made 10 units available for off-plan sales. Out of this 10 units only 2 units are left. 8 have been sold.
Send me a Whatsapp Message
