Real Estate Companies – The Secret Most Real Estate Companies Desperately Don’t Want You To Know and 2 Ways To Protect Yourself From Falling Victim

To be honest, it is not only real estate companies. One of the many plagues that has infected and is continuously tearing apart the Nigerians society and the outsiders perception of it is the epidemic of fraud and scams.

In fact, in many foreign countries the word ‘Nigeria’ is synonymous with scams and dishonesty so much so that an entire format of scamming people online was named after Nigeria.

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That is the ‘Nigerian prince scam’ which is a kind of online scam where individuals claim to be a Nigerian prince that is in distress.

Unlike Snow White that needs a true love’s kiss, what those supposed prince need to come out of their distress is a couple thousand dollars which they will reward with marriage followed by a life of luxury and a happily ever after lifestyle that will put Disney ‘s stories to shame.

If the victim, usually a single, lonely white woman is gullible enough and pays the money. The prince and his imaginary kingdom will disappear into the thin air they emerged from and the victim is left feeling foolish, frantically googling an imaginary kingdom that doesn’t exist.

Fueled by the urge to make money quickly without adequately working hard enough for it. This habit of dishonesty and trying to reap where one did not sow has permeated all sectors of the Nigerian society, including the real estate industry.

Through smoke and mirrors and well orchestrated acts, many people have lost their money and continue to lose their money to unscrupulous and heartless individuals hiding behind the facade of ‘real estate companies’ same way young boys with no plan to work hard hide behind the facade of a Nigerian prince to defraud their white victims.

You may have heard horror stories of people acquiring lands only to finish their payment and for years they haven’t been allocated their land.

People acquiring land only to finish payment and when they want to start construction they are hit with extra charges and if they resist their property is resold to another client by the company.

Some real estate companies selling a land that does not have a C of O and telling you they will perfect the title with time, that they have the C of O in view. Years later they haven’t perfected the title.

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You may also have heard about people keying into off-plan projects the developer said will be ready in 12 months and 6 years later the house is yet to be delivered, to mention but a few.

The scenarios are endless.

Should you throw in the towel and abandon real estate investments entirely? No! that’s throwing away the baby with the bath water. A very foolish and unforgivable thing.

What is the best way to protect yourself from falling victim to any real estate fraud? How do you protect yourself?

There are some ways I could get into but the main one, the best and most important one is know the company you are buying from.

In Lagos state alone, every week there is a new company entering the real estate industry and launching a new estate. 95% of these companies are not in it to help the housing crisis or to make land acquisition easier, stress free and safer for you.

They are merely there to grab their share of the ‘real estate money.’ They just want to make money.

There is nothing wrong with making money per se, that is what capitalism is all about but where there is a problem is when there is a big disconnection between the money the person wants to make and the amount of work they are willing to put in.

You must be sure of the company before you buy any property from them. This is of the utmost importance. You must be sure of the company before you buy anything from them.

The real estate companies track record – what have they done before?

What project have they delivered on previously? This is where you need to start your investigation. To understand the present and to better predict the future, one must consult the past.

Before you key into any off-plan property, you should first check other off-plan projects the company have done previously.

Did they deliver on time? Did they deliver exactly what they promised their investors and clients? Before you buy any land from any company you must check if they have launched and delivered any estate previously?

Did they actually develop the estate or just sold land and left? What estate infrastructures did they deliver on previously? What is the market saying about them? What are their clients saying about them?

This is where Amen City Ltd, the company behind Amen estate is head and shoulders above other companies. They delivered one of the best estates in Amen Phase 1 and they are currently doing magic with their Phase 2.

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This is why when they launched the Phase 3, the demands was and is still excess. People were reaching out from abroad to reserve a plot or more because they have proven themselves over and over again.

They have distinguished themselves as being true to their word and being exceptional in their delivery. As am writing this Amen Phase 3 is the fastest appreciating land in the whole of Ibeju-Lekki. Everyone wants to get a piece of it.

Why? the answer is simple, the company have proven themselves beyond any doubt that they keep to their word. They have a track record. A perfect track record.

This is what you should be looking for. What you should be checking before buying from any company. Their credibility and track record.

This is very important and necessary because it is the best way to protect your investments. There are many real estates companies whose only claim to fame is fliers and 3D renditions of estates they will tell you they are building.

A picture and a video that takes seconds to generate is not enough proof of credibility, dedication and trustworthiness. All qualities a real estate company should have before you do business with them.

A real estate company without a credible track record and successfully delivered projects is like the many Nigerian princes that are all over the internet with no kingdom and no palace, seeking for gullible white women to swindle out of their money.

The Price Point – cheapest isn’t always the best.

Before you buy any property, always do your background check on the company you are buying from. Don’t just buy because you have seen a property or because the property is cheap.

This is another big mistake many people make when buying a property. They are looking for the cheapest deal in the market. Guess the people that price their properties the cheapest?

Those developers and companies that have no plan of delivering on the fancy things they are selling you.

They price their properties the cheapest to attract the most people and make the quickest money. They understand the Nigerian buying psychology which is the cheaper the product, the more Nigerians rush you.

There are many factors that go into determining the price of a property. The first factors that companies consider is the location of the property and the potential for appreciation.

The next thing is the long term plan and project of that particular estate plus the facilities and amenities that will be added to that estate which you will benefit from being that you have a land in the estate.

The next thing that companies do with their pricing is exclude and filter the people you will have as your neighbours in the estate.

Anyone can buy a land of ₦1 million, ₦3 million or ₦6 million but only an exclusive set of people can buy a land of ₦26 million, ₦30 million or ₦50 million. The higher priced an estate is, the more exclusive, successful and refined the people you will have as neighbors will be.

This gives you an opportunity to network, befriend and rub shoulders with people who are very successful in their fields. Iron sharpeneth iron.

Another thing with higher priced estates is that the confidence of the company to charge a high amount is proof of what they want to deliver on the estate.

So when you are looking for the property to invest in, don’t go looking for the cheapest property in the market no matter how beautiful the flier and video rendition. That is a fast way to loose your hard earned money.

Beware of real estate companies that don’t have a solid track record. That have only fliers and Insha Allah. They are selling you dreams painted on a flier, buying a dream painted on a flier without a solid track record to back it up is the easiest way to end up in a nightmare.

Beware of the people that are selling you gold for the price of bronze. If you look hard enough, you will see that the thing they claim is gold is nothing but painted copper.

To protect yourself from the many scam and swindles going on in the Nigerian real estate industry, you should observe two rules.

1. Never buy a property without a solid track record.
2. Stop looking for the cheapest deal in the market, that is a fast way to lose your money.

I am Ugochukwu.