How to Expand Your Real Estate Investment by Reinvesting Your Returns

  • by Kelechi
  • 3 years ago
  • 1
How to Expand Your Real Estate Investment by Reinvesting Your Returns

How to expand your real estate investment by reinvesting your returns  is the focus of this article. A good way to expand your real estate investment is to reinvest your returns.

Real estate is a more guaranteed investment option because land hardly depreciates, instead it appreciates overtime. Little wonder banks prefer land as a collateral option. If you are interested to buy a land or have purchased one already, how do you keep expanding your real estate capacity? Below is the way to go

1. Buy, hold, then sell your real estate and reinvest the returns

If you haven’t already bought a land here is a fantastic offer for you. If you have bought one or more plots then hold it and keep holding. How long you will have to hold it depends on how fast the area is developing. 

Bear in mind that real estate investment is not a get rich quick scheme so if that’s what you are looking for you will have to look elsewhere. It is imperative to understand that you are in a long term investment system.

Also note that even if you hold your land for only six months it will most likely appreciate but you wouldn’t want to settle for tiny profit. Obviously, your aim is to maximize your profit.  To realize this, a better option is to hold it for a longer time.

If you have purchased your property in an area where urban development is expected to occur soon, then, cheers! You are bound to have huge returns in a short time. If on the other hand your property is located in a somewhat rural area, you are not on the losing end, you will only have to hold it for a much longer time.

2. Build on your land while waiting to sell and reinvest your returns

While waiting for the land to appreciate do you just let it lie fallow? That wouldn’t be a wise decision because time is money, you will really be losing out. How about you build and rent it out. Imagine that you are going to hold the land for five years and you spend one or two years building. Then you have three years to make money from the rent. The profit you make from the rent can go a long way to expand your real estate investment.

Even if it is just a ”I better pas my neighbour’ , just build, there will be people who fall within that level who might want to rent the house, especially if your property is located in Lagos. But why build a batcher if you can afford a quality house. A good house will attract quality tenants and this means more money for you. A second reason to build is that a building will attract a much more financial value than an empty land.

What if I can’t afford a land?

Here is how you can earn money from real estate investment and still reinvest your returns

Partner with a real estate company: You can make money in real estate without having a physical property. Learn more about it here. Pertinence limited helps you earn without having a property. They’ve got the properties, your job is to refer a buyer and earn as much as 15%. Suppose a land is sold for 5 million naira through your effort. 15% of 5m is 750,000. You are on the way to owning your own land.

How to reinvest your returns and expand your real estate

How do you reinvest your returns to expand your real estate investment?

You’ve waited a few years for your land to appreciate. Now you’ve sold it and made 50% or even 100% profit which is possible in Lagos. A worthwhile investment, isn’t it? So how should you use it? You’ve dreamed of owning the latest gadgets, and now you think the moment has arrived to equip your house with the latest gadgets, get a new car to befit your new status. Would you really do a thing like that? Is that a wise decision to take?

This is where people with poor mindset get it wrong and it’s the reason they remain financially stagnant. Have you heard people say the rich keep getting richer while the poor keep get poorer. Do you believe they are destined to be rich while your own destiny is to be poor? Don’t you think there is something the poor is not doing right?  

 The rich keep getting richer because the poor is a consumer while the rich is an investor. Here’s what to do with your returns if you want to get richer. Imagine that you bought that land for 1m naira, and sold it for 3m after a few years. Reinvest the 3m, or at least part of it in acquiring more properties. If you sell the later in a few years you will have made not less than 5m. This is why the rich get richer.

What can you do as a real estate partner who doesn’t have any property? How can you reinvest your returns to expand your real estate investment?  You remember that commission of 15% I talked about earlier. Are you going to let it rot in the bank? How much interest will it yield for you in five years? Don’t make the same misstate I made. Isn’t this now an opportunity to own the property you never heard? Waste no time, grab a land and be in line to make 150% to 200% profit in a few years.

If you don’t know that real estate is a lucrative business in Nigeria it’s time to wake up from your slumber. Start now to invest, reinvest and reinvest until you expand your real estate investment. You can definitely expand your real estate by reinvesting your profit.

Even if you are not a real estate investor, you can apply the lessons here in any business you do. Every business requires reinvestment to make it grow. Eating up your profit will only leave you stagnant and you do not want that to happen. So learn to expand your real estate investment by reinvesting your returns.

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