Doing Real Estate Investments Right In Nigeria

Space Summary

The Twitter Space Doing Real Estate Investments Right In Nigeria hosted by FinPlanKaluAja1. Discover the intricacies of real estate investments in Nigeria with CFEI. Get expert advice on navigating the local market, optimizing personal finance strategies, and diversifying investments for financial growth. Learn about the role of podcasts in financial education, the significance of staying informed about market trends, and the benefits of seeking expert guidance for making informed investment decisions. Dive into valuable insights on wealth management, financial literacy, and how podcasts serve as educational tools for real estate and finance enthusiasts.

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Questions

Q: Why is understanding real estate investment nuances important in Nigeria?
A: Navigating the Nigerian market requires insights into local regulations, market trends, and investment strategies.

Q: How can podcasts aid in learning about real estate investments?
A: Podcasts offer a convenient way to access expert opinions, market analysis, and investment tips on-the-go.

Q: What role does CFEI play in providing valuable information on real estate investments?
A: CFEI acts as a resource hub, offering insights, market updates, and expert advice on Nigerian real estate investments.

Q: Why is financial education important for making informed investment decisions?
A: Understanding finance helps individuals evaluate risks, make strategic decisions, and achieve financial goals effectively.

Q: How can diversifying investments enhance financial portfolios?
A: Diversification spreads risk, provides exposure to different asset classes, and improves overall portfolio resilience.

Q: What are the benefits of seeking expert advice for investment decisions?
A: Expert guidance can offer strategic insights, risk mitigation tactics, and help align investments with long-term financial objectives.

Q: Why is wealth management essential for financial stability?
A: Effective wealth management ensures optimal use of resources, sustainable growth, and future financial security.

Q: How can individuals stay informed about market trends for making sound investment choices?
A: Regularly monitoring market fluctuations, economic indicators, and expert opinions can aid in making informed investment decisions.

Q: What are the advantages of optimizing personal finance strategies?
A: Optimized strategies lead to efficient money management, reduced financial stress, and improved overall financial well-being.

Q: How do podcasts contribute to financial education and real estate insights?
A: Podcasts offer a diverse range of topics, guest speakers, and real-life examples to educate listeners on finance and real estate matters.

Highlights

Time: 00:15:27
Navigating Nigerian Real Estate Markets Insights on regulations, market dynamics, and investment opportunities in Nigeria.

Time: 00:26:45
Podcast Accessibility for Financial Education The convenience of podcasts in delivering financial knowledge and real estate insights.

Time: 00:35:12
CFEI Expertise in Real Estate Investments How CFEI offers valuable data, market trends, and expert advice for Nigerian real estate.

Time: 00:45:59
Financial Literacy for Informed Decisions Empowering individuals through financial education for smarter investment choices.

Time: 00:55:31
Diversification in Investment Portfolios The benefits of diversifying investments for financial stability and growth.

Time: 01:05:10
Seeking Expert Advice for Investments The importance of expert guidance in making strategic investment decisions.

Time: 01:15:47
Wealth Management for Financial Security Managing wealth effectively for stability, growth, and future financial well-being.

Time: 01:26:58
Monitoring Market Trends for Informed Choices The role of staying informed about market trends in making sound investment decisions.

Time: 01:35:20
Optimizing Personal Finance Strategies The advantages of optimizing strategies for better money management and financial well-being.

Time: 01:45:16
Podcasts as Educational Tools for Finance and Real Estate How podcasts contribute to financial education and provide insights on real estate matters.

Key Takeaways

• Understanding the nuances of real estate investing in Nigeria is crucial for success.
• Expert insights can simplify complex financial concepts related to making money and personal finance.
• Podcasts can offer accessible and engaging ways to learn about real estate investments and economic trends.
• CFEI provides valuable information on navigating the Nigerian real estate market effectively.
• Learning about the economy and personal finance can empower individuals to make informed financial decisions.
• Exploring various investment opportunities can help broaden financial knowledge and portfolio diversification.
• Expert advice can guide individuals towards making sound investment choices for long-term financial security.
• Optimizing personal finance strategies can lead to better financial stability and wealth management.
• Considering market trends and expert opinions is essential when venturing into real estate investments.
• Podcasts serve as educational platforms for learning about diverse financial topics and real estate insights.

Behind the Mic

Introduction to Money Space

Hey, folks, welcome. Good evening to another money space with me, Kalu Aja, on this space, of course, we're talking money, the economy and finance, personal finance. And we're always talking about how you can be a better investor. What are the opportunities from a Nigerian perspective? Of course, sometimes we do extend it out to other regions, but usually from Nigeria. Today, we're talking real estate. We're expanding our investment horizon because, of course, there's record inflation in Nigeria, about 33, 34%. That's headlines. So we're always looking for ways or opportunities or asset classes where we can invest funds and get a real return. And, of course, real estate is one of them in Nigeria that we can actually put money in. We get that capital appreciation plus the dividends, that is the rental income.

Expertise and Experience

So it's always an opportunity when we see folks that are doing real estate successfully in Nigeria that we bring them in so we can talk to them and we can learn these guys from, of course, Realty. They've been on this space, I would say, two or three times. They are basically short term rentals. They've done that successfully. I've known them for, like, I'll say, two or three years, call them friends as well. And I like to bring them up because they are really doing the getting their hands to say dirty in that space. And they have a lot of experience that they can physically share with us. So I brought them in to talk about doing real estate investment and doing it right in Nigeria. They are both here. I've got Adebolu, Mayowa. I've got Adenubi, Oladayo. hey, guys, you guys want to unmute? do that introduction yourselves, and then let's just take it from there. Go ahead, sirs.

Introductions

Good evening, Kalu. It's been a while. We. The last time. The last time were here was, I think, last year, and a lot has happened. Hello, guys. My name is Sadibulum, and I'm the CEO of asset house. So that you maybe should do elite introduction as well. Thank you very much, Kalu, for having us. It's a pleasure to be here again. My name is Dai. I lead the finance function at asset house, LinkedIn. Thank you. Great, great. Welcome, guys. And asset house is still relative. I should order name, right? It's still the same. Just for folks that are following. Still the same name. Excellent. All right, so, like I said, I knew you guys were doing this very innovative real estate.

Discussion on Real Estate Operations

What you guys do is to get a house and sort of convert that house and do short term rentals, but I can invest in that property and I get a share of the short term rentals. The value proposition, of course, is that because you are turning around your tenants faster, you are making a higher yield on that same property. Like, if I was going to buy that property, rent it out, it would be for two years, but you guys are turning it around faster, so you make a higher yield for me. Do I get that description right about what you guys do? Yes. All right. You want to talk more about it? Okay. All right, thank you very much. I.

Progress and Challenges

I think. I lost Bulu. Were you speaking? I think. I didn't hear you come true. Were you speaking? I. I don't know. Probably. Probably the network, but it will join later, so maybe I should just sort of, like, take it from there. yeah. you're. You're right. when we initially started, we, you know, we. We give this opportunity to people to sort of, like, invest in, you know, these units without sort of, like, putting down this large capital outlet. So we actually were also not, you know, buying. I think I lost him as well. In, out the.

Current Market Situation

I think I'm losing my. Okay. Yeah. So, Kalu, you muted me. I was trying to signal you. Oh, go ahead. I didn't. Yeah, go ahead. Go for it. Okay. Yeah. So I was saying that you sort of given everyone the introduction. So I just go straight to the value proposition and the area that we place specifically. So you remember in 2022 when we came to the space that time and the model wasn't really. We just started the business. Right. So, because Nigeria, usually you can't really do any real estate investments in Nigeria without significant capital.

Investment Opportunities in Real Estate

So the time that we had the space, we had the idea. We knew that shortlet rental was going to give more yields, but we couldn't get financing to get the land. So the only option that we had then was to lease the land rather than buying the land. So we leased the land, built shortlets, one bed and two bed, then subleased to investors to co own with us. Then we started a shortlet facility management company called Crestview Apartments. So Crestview single handedly markets those apartments, manages it, then return, send returns to the owners of those units in the building every month. And for the past 15 months, we have been paying out of an average of 500,000 naira monthly to all of our investors.

Investor Expectations and Returns

But as we started to scale, we realized that our investors wanted more. They didn't just want to sublease those apartments for, say, 1525 years. They wanted to own those properties for life. They wanted to buy it outrightly. So we're able to scale and started to acquire assets. So acquiring those assets outrightly meant that rather than subleasing those units to investors, the investors would rather buy those properties from us outrightly. Then we then sign a long term management contract with them. That mandatory allows us to market and manage those assets on their behalf under the Crestville apartment brand, then pay them monthly.

Expansion of Operations

Right. So ever since the last time we had the space, I think the last time were just at Ilupejo, but at the moment we are at Ilupidu, Suru, Leri, Lekki, Ikeja and Antoni. So I've been able to expand significantly, but our first two projects have been on a lease. But as I speak with you right now, all of our other projects on the pipeline, investors are buying those apartments outrightly, and we're helping them manage and pay them monthly. Right now, how have we been able to.

Real Estate Investment Models

Yes, I can. All right, so we have been able to sort of, like, structure a system that optimizes the returns to the investors, how we average all the returns. So we have a building that has 20 units. So we sell those 20 units to 20 different investors. We manage the entire property under the Crestville apartment location. So if I have in surreal, I have Crestview Solar, and I have 20 investors from that bought in Crestview Solar. We manage that building as a single entity, average all the returns, deduct all the expenses and capital expenditure, then pay them the balance monthly. And the model has quite been successful.

Investor Satisfaction

I think we've had about seven or eight of your followers that have enjoyed these dividends over the past 15 months. And you know, they've been our returning customers at the moment. Now we have in Ikeja that we're currently selling and another one in Antoni. So the idea right now is the service departments now has become a localized products. So because the first two locations were not in a very suitable part of Lagos, I mean, it's not that very suitable. So we started to localize the product.

Project Ratings and Pricing

So the first one is as a three star rating. The second one has a 3.5 star rating. But the one in Ikeja and Antoni would have a five star rating. And we are opening one in Lekki as well, that will have a four star rating. So what does this rating do? It sort of differentiates. It allows the environment and the building determines its price point. So what that means is our shortlet apartments are very affordable to all asset classes in Nigeria, starting from 35, you can get an apartment forty k.

Competitive Pricing

Forty five k per night, which is still ridiculously lower than the average price for a one bed anywhere in Lagos. And you'd enjoy all the facilities that you would enjoy anywhere. 24 hours. Electricity, Internet, functional amenities. Right. The one in Lekki, which is a bit more in terms of furnishing standard, a bit more higher would go for the rates of, say, 55, 60,000. And the one in Ikeja and Antoni, which would be our own five star project, will go within the range of 70,000. So what that means is the investors and these locations have different price points, so we don't sell those apartments at the same prices.

Investment Value and Property Ownership

So if the location is better, it means the cost of land would be higher and the cost of development will be higher, of course. Okay, so I just wanted to capture what you just said. So, in the past, you were doing the rent, the lease to rent. So if I want to invest, I don't own the apartment. I'm more or less leasing it from you. And I get a share of the dividends, the rental income. Yeah. During the day today, I am buying the apartment that I'm giving it to you to manage.

Understanding Return on Investment

And this seventy k. Forty K, you are quoting, is the rentals that you make on the apartment that I own. Yes. Perfect. All right. I. They will then accumulate all the revenue generated, not in your apartment, but on average, of all the apartments in that building, take out all the expenses and pay you a dividend every month. And this dividend would vary. And the various are dependent on the location and the unit pricing. So I give an example. The one in solary, for an apartment that we rent out for, say, forty k.

Real Estate Investment Returns

Forty five k. The investors usually would get an average of in Lekki to be opened. If the unit pricing is about 70,000, from the top of my head, we're looking at a return around, say, 650 to 700, 500 to 600,000 naira every month. So the returns usually is always a factor of the location, the cost of development, and the cost of amenities that we're providing. So if I was buying something in, say, the Solari one, how much is the apartment in Soliri?

Investment Opportunities in Major Locations

How much was in Lekki? Just if I wanted to invest in this, and I lived in diaspora or I had funds, how much? Okay, the one in Tuleri, they are all sold out. So the one was even the one in Lekki, as I speak, is sold out. We'll be running it by December. It's at the roofing stage at the moment, but we're currently selling the one at Ikeja and the one at Antoni. We have not officially launched the one in Antonia anyways, but the one in Ikeja, if you're to buy, you're buying a one bedroom apartment for 50 million, you're buying it outrightly.

Projected Returns on Investment

And what we're looking at is, after all the expenses have been deducted, you should be earning an average of 700,000 monthly, an average of some average of 10 million naira in a year. Because there are peak periods around, say, November, December, January, then usually the occupancy sort of like stabilizes around 70% to 80% during other parts of the month. So you're buying an apartment of 50 million, you're getting a return around, say, seven hundred k. The two bedroom sells for 75 million.

Pricing and Market Comparison

Of course, you'd expect that would charge slightly higher than what we charge for a one bed. So one bed is going for 670, the two bed will be going for, say, 100. And if you check anywhere, as I'm talking right now, online, to get a two bed service apartment in Ikeja, to be going for nothing less than 100, 3141 hundred, 50. And that's because individuals are the ones owning those apartments and converting their own personal apartment, or they buy an apartment in a building, you know, where they still have to pay the developer service charges and whatsoever.

Managing Costs and Amenities

But because we have significant control over all the amenities, so we're aggregating all the expenses. You know, we can sort of, I mean, go like 1015, 20% below the market rates and get our occupancy and pay our investors. So the one bed is for 50 million with an average of, say, 700k monthly, while the two bed is 75 million with an average of monthly, depending on the occupancy. So it's not fixed, the occupancy, the expenses, now that they've moved most of our projects to band a, you know, we're trying to adjust the prices to reflect, you know, the new expenses.

Adjusting Business Models for Investor Returns

But I would also say that we have had a bit more light that we have had over the past two years. So we're still trying to adjust the model to ensure that the returns still stabilizes around what we promised our investors before purchasing. Gotcha. In terms of, say, percentage return. Just to compare this with, say, stocks and bonds, I'm looking at if I do 10 million over 50 million for the one bed, that's about 20% more or less.

Explaining Return Variability

Yes. So another thing about, I think Daio would expensate more on that because there are different factors. We also pay monthly. Right. That's one, two, we ensure that the occupancy, when we started selling other projects, we promised a fixed return rate, but when we started, the market itself would adjust. So if we are projecting 70% occupancy and when we start, we're able to achieve 90% occupancy, the returns jump significantly.

Guarantees in Rental Income

So we can't really sort of give a fixed amount. But we already have a range model that Daya would be talking more about. Okay, and is there like any guarantee, not for the rentals that are going to come to me every month if I put in the. Right now I'm buying. If I buy the one bed for 50 million? And is there going to be like any minimum I'm going to make every month to say, yes, this is my minimum.

Managing Risk with Fixed Returns

And then when it's a peak, I make more, something like that also. So we have some clients that usually don't want to take risk. So they just tell you, oh, my, I don't want to. I don't want my returns jumping up and down. Can you give me a fixed return? So even if you have high occupancy or you have low occupancy, you get this fixed return.

Overview of Returns and Client Transparency

So we usually have that discussion with clients and we pay them a conservative return, say maybe 500,000. But there are times when the occupancy jumps, they get like 8850. Sometimes they get like, say 600. But if I would, if a client or an investor asks me that question, what I just do is I just forward all the returns that has been paid over the period, say like 24 months, so they can do the calculation and average how much would possibly pay them.

Monthly Reporting for Investors

So we have a report. So we send investors reports and the amount that they get paid at the end of every month. So we use that average to forecast how much. If they don't want to take risk, we can then agree, you know, at the back. Okay, you know what? Let's, let's just do 500k. So whatever upside doesn't come to you. So we just know that for this particular client, there's a fixed amount that will pay them if you don't want to participate in the upside.

Ownership Structure and Participation

So essentially, and I still own it. So I have this, I have a CFO and all that who has the legal paperwork and all that. Yes. So because the entire building is managed under a facility management company in Crestfield, we sort of, and we have a lot of clients that just buy because of returns. As I'm talking to you. Now, we have a lot of retirees, you know that. I mean, they depend solely on that return.

Investor Flexibility

So if we don't have a strict policy that says if we have 30 units, all 30 must buy for shortlets, you can buy for. You want to live there or you want to. At some point you're coming down to Nigeria. You want to be there for three months. If we do that, what that means is if per venture, 15 or 20% of our investors want to come down to Nigeria within, say, December, what that means is our revenue drops by 30% because it's been occupied by the clients.

Occupancy Impact on Revenue

But we have promised our investors that December is when we have peak periods, and that would affect our own promises and projections. So we usually have a stricteen policy that says, if you own this apartment, you can stay there for seven days without paying anything. And if you then extend your stay, you don't pay anything. We just deduct. If you're staying there for another 20 days, would accumulate the daily rates.

Investor Cost Management Practices

We might not give you the market rates. We can give you a rate because you're an investor, then deduct it from your returns over time, not necessarily deducting everything from the next month remittance. We can say, okay, we'll amortize it within three, four, five months and you pay it gradually. Got you. They will just. Overall, right, as an investor in Nigeria, what's your take overall, say investing in particular real estate investing in Nigeria.

Market Considerations Beyond Major Cities

I mean, there's Abuja, there's rivers, but I'm also concerned about those off cities. The Nasarawa near Abuja, the Ibadan near Lagos. What's happening? Will the red line help real estate in Ibadan? Will Warbak, Kefi, could you just give us maybe an interest on his listening here? He wants to do an investment. He's not going to come back and live here, but he wants to make that return or perhaps generate income for himself. What should cities we bring up?

Expansion and Market Strategies

So, because we operate on those projects. If we had. If were selling lands, for example, or were selling houses for people to live, you know, we could sort of take, as I'm talking to you right now, we're looking at having Crestview in Abuja next year. Currently we have six outlets in Lagos. We planted those six outlets in strategic parts of Lagos. Lupejo, Sirule, Lekki, Antoni, and Ikeja. They're all very close to the airport, aside Chevron, which is on the island.

Future Markets and Investment Viability

So if we're looking at expanding, I would say Abuja is a good market. I would have said Rivers two years ago, but the instability around the skewness of the source of income around people living there now. I mean, oil is no longer something you can bank on and create an investment opportunity for investors. But for us, we're looking at Abuja and I think emojden some parts of the southeastern part of Nigeria as well.

Flipping Properties as Investment

One other thing I would say is, I mean, flipping is also an investment opportunity in Nigeria. We have had some clients that just bought off plant. They just wait and buy it when you're just starting to build and they sell when you're done. But the risk is a lot of developers sort of mess the timeline up. And inflation has really, you know, affected the business as well. You can project to spend x amount of money, and when you're done, you're realizing that you're spending almost 100% more than you budgeted, right?

Cash Flow Focus in Investments

So for every opportunity, there's sort of like a risk attached. That's why our focus primarily has been assets that can, you know, that can send in cash flow to our investors every month. But I think Abuja, Ibadan is coming up. But to be very honest, it's not a market that I see eating it, speaking another like three to four years. So maybe when the railway is more stabilized and the youth maybe starts to run to those areas because of high rent in Lagos, then we can now start looking at that market.

Investor Interests and Location Dynamics

But right now, everyone, as I speak to you right now, wants to either move to Lagos or Abuja. And the Lagos market is still far ahead of. Of any other place from our own current research at the moment. Gotcha. So, I mean, let me just keep in there. So I think it's always very good to sort of like, take a look at just like general picture, you know, of the investment environment in Nigeria.

Economic Activity and Investment Environment

You have to also look at one where exactly is, like the capital going to? You understand, what exactly generates economic activity? Where all of these are things, you know, concentrated, where are people moving to? Where are the jobs, you know, sort of like happening? So if you look at all of that, right, you look at Nigeria's capital importation report. You look at, you know, the recent, like, GDP report. You look at things like, you know, where exactly the airports are.

Analyzing Investment Viability

You got things like, you know, the number of restaurant chains, all of those things, shopping malls, all of those things. And you look at all of these things altogether. You aggregate all of these things together. You then think about it like, okay, what exactly all of these things are. You know, what really forms the backbone of an economy. Okay? And then you aggregate all of that knowledge together, then you can only see that the opportunity really in Nigeria is just in a few places to really get yield.

Cash Flow Maximization Strategy

And, you know, I would also want to put it in this way. So if you, as I said, as you said earlier previously, we are just focused on maximizing the cash flows in the sense that were leasing those properties. So if people were investing in those did not have access to any sort of capital gains, they were only benefiting from the dividends. So now if you buy something outright, you know that, yes, if the economic activity is happening in this place, there's some sort of, like, value accruing to your initial capital.

Long Term Value Consideration

So let's say you buy something for 50 million in ten years, you expect to say, okay, even if I don't want to, you know, own this place again, I want to move out of Nigeria. Right? Or you. You have a need to sort of like, you know, use your cash for something else. You want to sell something quickly, you want to exit quickly. You know, in real estate, there's that liquidity risk, right? So all of those things are what you saw when you look at all of those things together.

Risk and Opportunity Analysis

You just see, well, there are only very few places in Nigeria where you can get such value for your investment, right? So, whether it's Lagos, whether it's Abuja, whether it's Podako, whether it's in the, you know, the very, you know, popular cities in the east or even in the north. In the north central. In north center. Right. So when you look at all of those things together, you have a sense of, you know, where exactly should show if you. As whether you're an investor or you're a buyer or you even a developer, you're looking for new development.

Investment Zones and Future Predictions

You look at all of these things and you have to go for because you want to make sure that you get a return on your capital as soon as possible. So really, as it is now, I would say that Lagos, Abuja is where it's happening in Nigeria. Most of the capital is flowing there. Most of the jobs are coming up there. So that's one investment case for it. So you asked the question earlier about how exactly does this compare to, you know, order things or I think you want to say something first, maybe for.

Reflections on Investment Calculations

No, I was just saying that. I was just looking at the calculator. 50 million naira is about, let's just call it $30,000. Is that correct? 50 million. Wow. So with $30,000, I can buy a. Is that a one bed or a two bed in Nigeria? One bed or two bed? so for our own specific projects now, I'm just looking at the old league general, you know, Lagos, Abuja general, real estate environment.

Pricing and Locations

I think that should get you sort of like a one bedroom apartment in most. In sort of like the medium, bro places, if I would call it that, the hybrid places. That's like ikuy leki, phase one. You. Yeah, you cannot. You. You probably get, like, how. No, I'm just saying. So if I bring. If I bring. If I go to America now and I borrow $30,000, I can borrow that at about below 10%.

Financing and Investment Dynamics

If I do a HELOC, which is a home equity line of credit, I can borrow that amount at about 5678, let's just say 8%. And that's for 30 years. 30 years. So if I take that money to Nigeria and I buy two one bedrooms, that's about 60,000 or 30,000, and you're giving me naira revenues. Not going to use my naira revenue to pay back the loan. That is going to be that exchange risk.

Investment Cash Flow Potential

But I do get this naira cash flow, which I could then invest also in Nigeria, maybe in equities or something else, but it's really $30,000. I'm going to pay back 30 years. If I travel back to Nigeria, like you said, seven days, I can stay in this place for when I'm in Nigeria. Right. For the week. It does make sense if you look at it that way.

Summarizing Investment Insights

Yeah, of course. So let me put it this way. I think for most people, I would advise, really, that. I don't think it would. Just looking at the old environment in Nigeria. Go ahead.

Investment Risks and Considerations

Risks the inflationary environment and all of that. I think it would better to, when you are making an investment in the country, you should have sort of like a longer term view and also ensure that your investments are generating cash flows. That's one, then two, you're also getting that capital, you know, capital appreciation. So. And that's the advantage of what we offer. So, for example, if you say you want, you have $500,000, just hypothetically, right? So. Or let's say you have $10,000, as you said. Right. $30,000 today is, say, 50 million, right? at the rate of, you know, there's. You buy, you know, an apartment or you say 10,000, you can use it to do anything. Right. You keep that $10,000 in a money market account, right? Getting maybe 5% on it yearly in USD, right? Or you bring that and buy an asset here in Nigeria. It could be you buy land and you just, you know, allow that to you syndicate, you buy that land and then you wait for some time, maybe like ten years or 15 years before you sell that back. Maybe over that period, the price triples. That's so 50 million. Over that period, it triples to 150.

Comparative Value and Cash Flow Generation

Now, let's say over that same period, the value of the naira house. So essentially you are getting just net, let's say the value of the naira house. So that means that $30,000 then is now $15,000 now or in naira or. Yes, in naira, right? So it means that net you the value of your investment, really, probably rather than two x, you are looking at something maybe like 0.60.7 x, right? But then if you invest in something that produces those cash flows, one, over that period, you get your 150 million, right? But also the dividends that you are getting over that period, say within ten years, depending on the yield, if it's 10%, like what we do for those who are at, are currently invested with us for our how tried projects are getting roughly between ten to 12% in terms of the yield, the rental yield on that. So over those ten years, you already get your capital plus then that capital appreciation. So you're getting like forex.

Naira Investment Perspectives

So even if the value of naira house, you're still getting double your investment at the end of the day. So that's the way I think people should approach investing in naira assets, right? You are saying basically the naira dividends will pay back the fixed naira costs used to buy the house, that's what I'm saying. Exactly, exactly. Over that period, naira dividends will pay back that amount you bought it for. So then your capital appreciation is now, you know, your net earnings over that period. So I think that's the way people should also, and also, I would also say that you in Nigeria, or whether you are living abroad, even if you live abroad, you would have, you know, you want to send money back home. You have people back home that you have, you want to do things back home. Maybe you want to come for December and spend money. I don't think it would make sense for you to be selling off your dollar savings over there, right? So your naira investment should be paying for your naira expenses, you understand?

Investment Strategies for Inflation Risks

So even. Because if you say the naira is devaluing and then you are selling your dollar, it means you are already losing value. So rather than that why not just invest in something that produces cash flows in Nigeria that produces capital gains for you whilst keeping your dollars over there. And then if you have an asset here in Nigeria you can lend against it. You could talk to our banking partners and from there you grow your wealth in Nigeria without even affecting, without even exposing yourself to whether it's the interest rate risk or inflationary risk or FX risk that's associated with all of those things. That's just the way I see it. Interesting. I'm also asking a question. I want to bring a Lumi. They just talk about the, in terms of the comparing this with stock market and all that. But the question is there a mortgage? Do I have to pay 50 million naira cash or can I get a mortgage to buy this? Just question.

Mortgage Options and Payment Plans

Okay so currently we don't have any mortgage partner but what we try to do is we try to allow our investors to spread their payment within the construction period. So if we're building within say 15 months, investors can spread their payments within 15 months with just about 15% down payments then spread within with an interest rate of less than 10% within that 15 months. So you're paying 55 million within 15 months. Flexible. But currently at the moment we don't have any mortgage partners. Interesting. Do you mind me bringing. You've been listening right olunde? I'm looking at Nigeria returns, nominal yield treasury bills 21% two years bonds 17% three year bonds 18% corporate bonds 26% stock market 30%. These guys are doing about 25%. What's your take? Limited. Interesting conversation kalu. Thanks for begging me and I listened to the gentleman he made very interesting disposition. But I have few concerns and I wanted to ask questions.

Concerns Over Investment and Market Liquidity

So for me for example I have exposure in Nigeria capital market but I'm also looking at diversifying into the real estate market and intentionally I have little exposure in it because of the regulatory concerns. So my first question for the speaker is like for example you know, money market I'm getting 21% per annum. So my 15 million investment for example will fetch me 10 million tax free. That's even if I'm using the FG and securities. Let's say I do more aggressive. So the thing is that liquidity risk is negligible. The rate of defaulting. Though we had few cases hip hops the FGNC was recently but it almost leads to its safest securities. So my first question is that how do I know the strength of your company. For example, do I have access to your financials? Do you guys do investor session? Do you open your books to investors? And you know, the legal state government released a data report that bills across the financial space that 15% of properties in Lagos are just registered.

Investment Transparency and Property Validations

So are your businesses, your properties, are they already stacked? Is there a way we can verify? Then? Lastly, it's interesting to know that many Nigerians will have exposure to credit and I liquidity, just like you rightly said that the amount of money used to buy that property is not cheap, looking at the disposable income of the average nigeria. So do you spread cost or are your target market the ones in dark, poor upper middle class? These are a few questions I wanted to ask. All right. So I think your questions are sort of like bordered on different things. One, I think you talked about governance, right? Two, you talked about comparable returns with other asset classes. Then three, you talked about corporate structure that's like, are we registered with the government?

Corporate Structure and Regulatory Compliance

Are we following regulations and all of that? I think probably let's divide it this way. Mayowa, you probably talk about the company's registration, all of those things and how exactly we comply with regulations as regards real estate and all of that. Then I would just take the governance and comparable. So I think you just start from there and then I'll take it up after that. All right. Thank you very much. So when we, our first two projects, I don't know if you joined when we started, was a lease, right? So what that means is we didn't buy the land, so we leased the land. So the cost of acquiring those assets were very low. So the yields were much higher. At some point we're having yields of like say 35%, 40% in a year.

Investment Yields and Property Ownership

That was because the cost of buying those assets were like less than one third of what the actual value was because we didn't buy those lands. The projects that we're currently selling outrightly because our investors would buy those properties and own it forever, right? Or under the Land Use act law, which says if you have a CFO, you own it for 99 years. We usually ensure that those lands have registered title, like the one in Ikeja has a governor's consent which can be verified anywhere. And we ensure that we get our building approval before we commence. The sites, the one in Lekki, every other projects that we acquired outrightly, that we acquired the land rather than leasing from the original owners of the land, we ensured that they had either Cos or governor's consent and all approvals were seeked before construction commenced.

Governance and Compliance Framework

Then what else? Again, Dio. Yeah, I think he's now talking about governance and all of that. Maybe I should just take that. Our companies are all registered. That's one. Two, we have a board, even though we are still quite very, we are still quite small. We have an existing board and one of our directors basically owns nothing in the company. I would not want to expose that person because they are quite private and all of that. But that person has, I think, 15 to 20 years experience in the financial sector and also oil and gas sectors. So we are compliant to the level of what you'd expect from a small business or a medium sized business. That's one. Two, I think your question around comparable returns. I would say this one, you're investing in money market today, the yields in the money market.

Investment Yields and Real Returns

If you buy once, there's no compounding for money market investments. That's one. Yeah, we have compounding with as regards the, even the earnings and sales compound. Why? Because we adjust our prices in line with inflation. So of course there's an increase that ends and all of that. And once you invest at once, you earn those dividends for life. So it's more like you are an equity partner in this business. That's one. Two, you earn capital appreciation, so whatever you're buying has a value attached to it that increases. So, but then if you look at the money markets, you only get your, once you get that payout, the only thing you are concerned to is the yields that are already available in the market. So let's say inflation comes down, the central bank will reduce interest rates. You won't have access to that 20% again.

Understanding Real Estate Investment Returns

Okay, there was a point, I think in 2020, 2021, yields were like very low. I think about ten, 910, 11%. So, you know, those are the kind of things that you would see in financial markets. Yields fluctuate and all of that. So compared to this is something that once you buy at once, you get to enjoy your dividends. And this is not an equity investment in the market where things are subject to overall market conditions, whether, how the company performs itself. So some companies might decide not to pay dividends this year and all of that. But we, you know, you are the owner of this thing, right? So basically we only deduct operating expenses and whatever is less, we take a percentage of it, a fixed percentage of what is left.

Liquidity and Investment Assurance

So you always have something at the end of the month, right? And if you say you want to sell today, in fact, I would tell you that you as an owner in a, you want to sell, we would, we ourselves will buy it from you. So we have a structure in place such that the liquidity risk that's associated with real estate, regular real estate investments, I'll tell you today that if you buy land in from some of these developers in some of these other locations, I talk about if you buy something from them for people that there are people who have bought from them, say, two, three years ago that want to sell now, that cancel, they are not even picking their calls. But that doesn't happen with us because we've had people who someone, like two or three of our clients bought from us, and then three or four months later, they just came and said, yes, they want to sell, that they need cash, million, all of that.

Value and Competitive Edge

We bought it from them, right? Yes. And then we found people to sell it immediately. Why? Because there's a lot of value attached to what we sell. So, I would tell you that as regards competitively, we are far more competitive over the long term, better than whatever exposure you get. And again, you know, the way financial markets are, I'm also a player in the capital market, so I'm kind of conflicted here. But the markets generally, I think the equity market itself has not moved since probably like February. So it's more like an arbitrage game at the moment. So if you want to make money in that market, you have to give your money to a professional manager, or you put your money in an ETF or something like that, or a mutual fund.

Real Assets and Cash Flow Measurement

So if you look at all of these things, and then you compare that to an asset that is real, that you can see, that generates cash flows, that you can measure. You can even come there and see it every day. People move in and move out. So you know that your money is working. All right. So these are the things that these are, in my opinion, I think it's a very, very good, you know, value proposition for anyone. Can I have something quickly? Go ahead. And. Yeah, very quickly. So I didn't mention that we send investors a report at the end of the month, right? So they would have access to the breakdown.

Reporting and Investor Communication

So I'm on my phone now reading a sample report. An apartment was booked for 25 days. The total revenue generated was 900,000. Total expenses was 400,000. Our return was about 555,000. So that's what they get at the end of the month. So they see the breakdown of the occupancy, they see the breakdown of the expenses. And they get their returns stated in the report. So if you want to sell, you can easily just, you know, send an email would accumulate all the returns that you've earned so far if you want to use it as a social proof, if you have a buyer. So you can easily say if you buy this property the following month, you're already earning this amount. I've sent an email and the returns will then be accrued to you monthly. They also mentioned we had a client that bought a unit of one bed last year for about 29 million and sold it for 40 million and he has collected one month return before he sold.

Client Experiences and Success Stories

So aside the returns that you'll be getting monthly, when you tell anyone you want to buy that wants to buy from you and tell them this is what the reports that I've been getting and these are the returns I've been handing, you know, it's easy to sell. And also we organize an investors forum, sort of like a meet and greet session every year. That's where we analyze the challenges, the future projections and the strategy for the following year. So we do that every year. We also the investors at Radisson and we do a breakdown of everything, then plan for the next year ahead. Just to add towards. So what, we're just going to summarize what Lumine was saying and what you guys are saying.

Comparing Real Estate to Other Investments

So if I had two options, right, let's say I have a two year bond issued by the federal government of Nigeria. That's the safest investment in Nigeria. That two year bond is paying me about 17%. So the real yield is -15 right? So if I buy that bond I get 17%, but I'm actually losing 15% because of inflation. If I buy your property, ieo, so in your property I'm going to get 20%, which means I'm losing about 13% real. But the capital appreciation on your property is really what differentiates you from the bond because the bond itself, like you said, it's a reinvestment risk. That interest rate is going to change when that period runs away. But in your own case, the property value, even if it does not appreciate it's 50 million.

Rental Income and Financial Flexibility

And again I'm hearing you say you pay monthly revenues. So if I have that property, even if I'm not going to come to Nigeria, someone says, uncle, school fees. This month's rent goes for school fees. Tomorrow's rent goes to Mama Mecca. I'm getting that rental. And if I come to Nigeria, probably I could also then stay there. But I like the part that you said about statements, because with the statements it becomes cash flow. I can take that statement to a bank and monetize and tell the bank, hey, this is my income in Nigeria. I'm making this income in Nigeria. I want to borrow money or I want to do this or I want to go for visa. This is income from my property detailed month by month. So I like what I'm hearing so far.

Strategies for Property Management and Safety

let me get Osman. Osman, thanks for hanging out. So. So, Osman, please jump in. Usmanda. Just going to wait for Usman a bit. If he doesn't, I'll come back to you, Adebola. Yeah, let's just come back to you. To you guys. To you guys. Olumi, did you want to add anything to that summary? I just did as regards comparing this to treasury bills. Yeah, yeah. So I totally agree with the speakers. But you know, the only part that might be a concern for me is how you sell this project to the average Nigerian. Or it seems that your targets are the upper class Nigerians or the elites.

Understanding Market Access and Affordability

Because if you look at the payment plan, for example, you mentioned about one time payment for the Kenya property. So I'm looking at how do you guys really tap it? Because this is a very interesting concept. In fact, I'm not looking at how to. I'm considering it, you know, looking at how to question because, you know, naturally, anything real estate, except on Carlos space. I try to run away from it because I have a lot of friends that have swam with sharks and got beaten badly. And I don't want to hear that because in Europe, for example, buying property is as simple as buying a stock. I don't know why. It's very difficult in Nigeria. So please, do you have a website then also you look at the also concern about the narrative valuation.

Foreign Investment Considerations

Yes, you might say that you get capital appreciation. But at the end of the day, for somebody bringing FX in, though, you've advised that it's nice for people that are within the local context to really move to. It doesn't bring in that foreign exchange loss. Well, for Nigerians in diaspora, they're looking at this opportunity. Are you looking at windows where people can use that opportunity to edge? Because many of us don't really have something really solid back home that can really depend. So do you have those kind of concepts in future? Thank you very much.

Investment Structures and Financing Challenges

All right. Thank you very much, Olumide. So I'll give an example. I think right now, if the banking system was right, I can tell you for a fact no one walks into the bank with a copy of our annual reports. So the annual reports sort of states how much every investor was paid every month. No one walks into the bank with that report and I see no reason why the bank shouldn't be able to loan, you know, if you have say like 20% down payment I see no reason why the bank shouldn't be, I mean lending any of our customer that walks into the bank because he can as well just have an agreement and say, you know what, for every return earned this month just pay me 40% or 30% and you pay the remaining 70% to the bank.

Addressing Lower Income and Market Access

Secondly, we have clients that couldn't afford to buy this house right when were selling lease. So the lease was usually within the range of 10 million to say 18 million. So we had a lot of, you know, lower middle class that just, that could afford that property, right. But right now what we advise is people can as well pay. So we had a client that had three of his friends, they were both in Nigeria, they contributed money together and they paid the initial deposit and at the end of the payment period they went to the bank, created a joint account and we send that money to the joint account. I don't know how they share it but that's what we also advise our investors to do. And we are also hoping that when the government can sort of open up that mortgage, I think our project would be one of the hottest in the market because it's very direct.

Inflation and Investment Strategies

You're investing this amount of money and you're getting this average returns every month and you also talked about inflation. I can tell you that some of our diaspora clients might even be converting the returns every month as a way to hedge against or reduce the risk of devaluation. So that's also an option or like Daniel said, you have the money in Nigeria to cater for all your narrow needs. Right? So an option is, I believe, right. I could recommend one or two banking banks that we have good relationships with if they can sort of like help or you can just crowd fund with two free partners, create a joint account, then we pay to that joint account every month.

Insurance and Accountability in Property Management

Yeah. So let me also sort of like chip in there, see what you, what my said is basically apt. Okay. See it's a very sad thing in Nigeria today. Of course I think the biggest problem we have in Nigeria is still inflation. Without that you can't have a thriving mortgage industry because the interest rate on loans will be just too high and it won't be inclusive for the majority of the population. So that's quite sad. Mayowa has already given some of the options that we give to people. I would also tell you this for a fact. We've been doing business with some banks, like regular commercial banks about two years, okay? They've not deemed it fit.

Challenges in the Banking Sector

Like, they see our cash flows every day. They've not deemed it fit to even call us to say, oh, yeah, we have this line of credit available for you. Okay? But I will tell you for a fact that an islamic bank, Islam, they are very strict. Very, very strict. If anybody here knows what an islamic bank is, non interest banking. They saw our numbers, right? And they immediately poached us from our commercial banks and they're offering us this line of credit. I will tell you, that's, that's how, that's how strange it is to show you how the nigerian, you know, banking system is quite. It's, it's just lopsided. Okay? So there is not much we can do in that place. Of course, some guys are already doing something, things very interesting in the technology space, trying to, you know, fractionalize these assets.

Future Opportunities in Real Estate

It's something that we are also looking at sort of like in the medium to long term. Okay. But at the moment, of course, we have to do what's available, what's possible or feasible within the available capital that we have on our hands. So of course, it's something we are working on. Initially when we started, our products were a little bit more inclusive than it is. But of course, as an organization, as a company that prioritizes very high quality development, those leases were just not as profitable for us. So we had to find a balance. I would say that in the future we're also looking to partner with some of these banks to have a record of some of our clients who already have these assets and then they can use those assets to acquire more assets in the future.

Macroeconomic Influences on Real Estate

So really it's an exciting one, but also just the macroeconomic situation of Nigeria. The fact that there's no financialization in our real estate sector at the moment, it's a really sad thing, but then what can we do, really? So influencing policy is not, it's still the job of the bigger, the larger players. And they are not, most of them are not looking at that. if you go to these guys who are building in, you know, the Ecoes, the shopping malls, the larger shopping malls, the, all of these guys who are like at the top of the food chain, they don't really care about even the upper middle class in Nigeria. Okay? So we, as we still have products that are inclusive to the upper middle class and also the middle class, if you look at it that way.

Client Base and Market Inclusivity

So we have clients today who even with earnings of, like, you know, one, 2 million naira in a month can afford to do. And I think Carl also said something then that for those who are already earning on a monthly basis, you can use those monthly earnings to dollar cost average. So you can take those monthly earnings and even invest in dollar assets and, you know, average, using dollar cost average, I think you're very familiar with dollar cost average. So this predictable cash flows also helps. And that's what some of the advantages that we're bringing into the. Into the place. So we are differentiating ourselves even within the sector.

Long-term Investment Potential

So, as Mayowa said, if the fundamentals change around the macroeconomic picture today, we are open. We are positioned to actually benefit massively from that. So that's just what I'll say to you. Thank you very much for that question. All right, great. I won't get binga in to ask a question, but let me also say that there's this new pension law that allows pensioners to use, sorry, contributors use 25% of their RSA balance as a capital injection to get a mortgage. I'm not sure if you guys are plugged in there or if you're exploring that with the pfas, but let me get. We got to ask a question.

Clarification on Property Management

If you guys have that, you can also just let us know. Hi. What's your mind with this? Yeah, thanks, Kalu. Yeah, I like what I'm hearing. I also like the figure the guy is giving out. I mean, as Roi. This sounds so good. But I want to ask him, who is going to responsible for insurance of this house? He's going to be the investor or they will be responsible for insurance of this house because it's going to be an apartment. Right. So insurance case of inferno or whatever outbreak or anything happens, who is going to be responsible? Are they going to capture that into their own account or it's going to be done by investor? That's number one.

Accountability in Furnishing and Maintenance

Number two, I want him to clarify to me who is going to be responsible for furnishing of the apartment? The old accessory in the apartment is going to be an investor. It's going to be them. Number three, who is going to be responsible for overall maintenance of the building, exterior, especially maybe painting maintenance, general maintenance, everything. These are the three questions I would like him to help me with. Thank you. All right, thank you. I'll answer the first question and my answer the remaining two.

Insurance and Maintenance Structure

So as regards the insurance already, as we told you earlier, we aggregate the earnings. So even before your net earnings get to you monthly as an investor, all of that has been sorted. Whether it's your insurance, whether it's the capex to fix to maintain the building, whether it's your withholding tax, even all of those things have been deducted before you get. So we already have provisions in place. And those are the advantages of the structure we've put in place. Such that if you were owning those apartments individually, it would be sort of. How would I put it? The aggregation basically helps if it's in clusters like that.

Management Benefits in Real Estate

It would. It would make sense because if, for example, you're in a building and someone is not paying their service charges, and then the landlord cannot afford to give everybody. But this time around, you have one landlord or one manager who is aggregating all of this, whether it's so. So all of those things are taken care of before it goes to you. So of course we have that insurance in place. And then the endings of that. That building itself and the apartment altogether pay for all those things individually before. So you don't have to worry about that as an investor.

Overview of Financial Challenges

Okay, thank you. So let me start from the furnishing, right? So our first two projects, Kaluka and, I mean, I think Kalu, you would remember that we added the cost of furnishing to it. And one incident happened this year. First, we had one of the craziest inflation, where the money we charged for furnishing sort of like adds into the cost of construction very recently, was what the project we just delivered at slerery. In fact, we had about 40 million deficiencies. We had a loss, technically inflation, sort of like it was a lease. So it wasn't profitable. And at the end of the day, we still had to finish that project. So what we did, and we already put in the cost of furnishing. So what we did was we had to send an email to the investors that we told them, see, there's this extra cost. So if we are to pay you, say, 500,000 every month, we'll pay you about, say, 300.

Managing Furnishing Costs

And we'd amortize that over, say, like 24 months. Or if you're willing to pay in bulk the cost of that extra cost of furnishing your apartment, you can pay. So because of that issue, we couldn't afford to. To have those. We had about 15 to 20 acs, we had sofa chairs and there was a time that rain fell, entered into the warehouse. It was massive for us. And secondly, usually the furnishing that is invoked before development isn't what would be competitive after development because we always want to stay ahead of the game. So if I plan that you should spend say 3 million naira to furnish a one bedroom apartment 18 months ago because typically the project is being developed within say 15 to 18 months at the point of delivery, something else is in vogue and I've charged you for it. So it's better for us to sort of like hold down on that furnishing and just charge the basic finishing.

Furnishing Billing and Maintenance

Then two, three months before delivery we send the furnishing bill and we do it for all the investors. For some of the investors that will not be able to afford to even pay all, we come in and do it for them and deduct that returns over a specific period of time. So that's what we do. As regards that then the third question you asked, the furnishing, the maintenance. Sorry. So now the thing is anyone that wants to book an apartment doesn't know that you as an investor own a unit of one or two bed in Surulere or Lekki or in Ikeja. All they know is Crestview Ikejae. If they'll give a bad review, they'll put a bad review on Crestview. Ziker's Google review, which would be a dent to our own business. Right? So we ourselves, the maintenance, both the exterior and the interior is of more importance to us because our customers, we have about 5000 customers that come in every single year in different of our outlet.

Proactive Maintenance Approach

We pay attention to their reviews. So we don't wait for even you as an investor to come and say that it needs maintenance before we do it. Because people see it as our business. They don't even know that these units are owned by different investors. So that's why the maintenance boot in and out is a priority. And even when you furnish your apartment at first no one calls you again to change anything. Usually within like three to four months we revamp all the shortlet apartments without even calling the owners of the apartment to say oh, we are changing this. So we do it with our money, then take out the loan. We can sort of like loan the apartment then take it out in like six to seven months. So that's what we do. So when you pay for your furnishing ones till the business ceases to exist, no one calls you to ask you for a single penny for maintenance, for changing or anything.

Discussion on Insurance and Coverage

Okay, so I hear you, Mayowa. So this is where I'm going, and it's very clear. I like your response to second and third question, even though the first one, I'm not really clear about the insurance. It's not. I'm not really clear about the direction of the insurance. We have a partnership with an insurance company. Okay. Okay, that sounds good. So, like, for example, let's say after six months, UC is, you have AC issue. You have to replace Ace, you have to replace washing machine, you have to replace bed sheet, all those. Are you going to reduce my net income every month? Because you are doing that. Like I said? So we're going to like, you know, every month expenses. Okay, now you want to take that?

Understanding Income Reduction

Okay. Yeah. So this is it. It is. When you own an asset, that asset is expected, is expect. When an asset that generates income, it's expected that the asset can maintain itself just from the cash flows that it generates. So, for example, if there's capex, you know, when a company, a regular company wants to invest in its own business, they will take from their retained earnings or they take from, you know, from just the cash, or they get loans from a bank or something. So, yeah, now you cannot loan from your bank, so you have to take from your retained earnings. And that's the reason why your earnings would reduce. So let's say you have. But there's a way we make it very easy for you.

Amortizing Payments

So rather than you paying out all of that at once, right, we then spread that. We amortize those payments over, you know, it could be six months, it could be eight months, it could be nine months. It could be time at a, you know, applicable interest rate. Okay. That's very. So even you, when you are getting those returns monthly, you would not know that, you know, the. You will see that the returns are fluctuating. Yeah. There's a variance, you know, in what you get monthly. But of course, you will see that when the demand is high in the market, you won't even know that we've, you know, made some, you know, expenses in maintaining and all of those things. So I think it's, the business is very sustainable.

Sustainability of Business Operations

That's what we are focused on. We are not running a Ponzi scheme. All right. Yeah. So, yeah, sure. Thank you. So, is it from my side or from your side? It's not yourself. Muted the person. Yeah, please mute your mic speak. Sorry. We got real quick. So I can get to ask a question and if maybe send a DM, but maybe last question and they send a DM just so I can recycle the room. Yeah, go ahead, Menga. Okay, I think he has answered my question. I'm just trying to. Okay, let me allow other people to ask questions. Let me use the mic for now. Thank you.

Clarifying Service Duration

Okay, because I have them for an hour. I want to keep them as long as possible. They've been here for time. Let me get ice news. We've got ice news. Bishop. Rocky, hold on. Ice news. I've got Ade Nubia Diena. Did I get that right? Adey Nubia Diana has been here for a long while. Not sure if you still want to speak. I don't see any profile picture. Ade, is that he going to speak? If it's not going to speak, then I'll just get ice news, please. Go ahead. Ice news. You've got the floor. Go ahead. Okay, let's get Rocky. Rocky, go ahead.

Investor Contributions

I'm here. I'm here. Sorry. I can. Please go ahead, sir. Good evening, everybody. Nice one, Carlo, for what you're doing here and everyone here. So my own is that here we are all talking about money. So the guys in charge, I want to ask for partnership because I mean. To do that DM real quick. And they can take you on that. Just send them a DM for that. Right, Ken? Ken? All right, thank you. Okay. Thank you very much, Carlo. Good evening, everyone, to the house. And thanks for. For the presentation thus far.

Concerns about Ownership

What I would like to ask the gentleman in the house is the issue about ownership, because I. When you talk about real estate, at the end of the day, ownership is really important, if you might say you have an asset, but you don't really own it at the end of the day. And I mentioned, and I've heard him mention, I've heard them mention, you know, some things about leasing the land, you know, and then building upon it and all that. So how. How is ownership managed at the end of the day? Who owns these properties at the end of the day in terms of as legal? When you talk about legal ownership, how it is managed.

Legal Ownership Management

Hello? Hello? Hello, Rocky. Dear sir. Hello. All right, go ahead. Go ahead. Okay. Okay. I think. I think. I think that's the question. Yeah. You know, ownership is really important. Thank you. All right, so, all the projects that we're currently selling at the moment, you. You own it outrightly. the list that you heard us mentioned were the models that we started with two, three years ago when we couldn't secure financing to buy the lands outrightly. So right now the lands have been outrightly purchased. Right. It's not a joint venture. It was outrightly purchased.

Ownership Transfer Process

And we'll be transferring ownership through date of assignment to all the investors that will be buying into that project. Okay. Okay, great. Great. Thank you. Very, very good stuff you guys are doing. You guys are doing a great stuff. Thank you. To be honest. Great work. Great work. Yeah. Thank you. All right, let's get Bishop. Bishop, go. Go right ahead.

Bishop's Questions

Yeah. Good evening, Mister Carlo. Good evening, everybody. I don't know if my questions are really been tackled earlier. I think I came in a little bit late. But I have two questions for you. One, how quote unquote regulated are you? How do we know our money should be safe with you? That's one. Two. Like I said, I came in quite late and, the only idea I had about who you guys are was when somebody mentioned, Crestview. So I did a quick Google and, it didn't really come up with anything.

Lack of Online Presence

It was coming up with some foreign India, American stuff and all that. Because I remember a. A speaker before me said something, asked about a website. You are silent about it. So if I need to take a decision without really. I really. I understand. You can't answer all questions here. Is there a website or where can I go to really take my time, get all the information I need, and decide if this thing is really for me or not? Thank you.

Providing Crestview Information

Okay. Thank you very much. So I guess you didn't google the right. You didn't get a spelling right. Crestville is c r e s t. That's crest then. V I l l e. I guess you wrote vio, so it's ville villa vil. Can you also share that on the drummer or DM me so I can just put it up? Okay. Yeah. Just please, send a DM to mister Carlo so you can post it. Yeah. And yes, we have a website, so we'll send the link as well.

Website and Social Media Details

Then you can also check the construction page. So we have the company that sort of constructs these properties and market. Okay. I think it's on Instagram. Am underscore realty so am underscore har elty. Am underscore r e a l t y. Then the facility management firm that manages the shortlets is Crestview. C r e s c v I ll e. Then the website would be posted. That's crestview. Dot ng. You can check it as well. Then we're working. We're sort of like revitalizing the asset house and am Realtors website.

Updating Online Presence

So it's currently not on right now, but through our Instagram pages, you could sort of see all of our projects, the ones that we delivered and the ones that are currently in operations. Yeah. Also. I think on this space we have had about ten of our current investors are from Kalu's followers. So if there's anyone here as well, before the end of the session, you can also say a word or two. Yeah, I was going to talk about that.

Reflecting on Past Projects

I know you've, like I said, you've been here for a long time. I think two years or one year. Just want to talk about what you did, the returns you did for those folks, and how it's just going to give a snapshot. I know I brought you in and some folks sent me DM. They've been impressed. That's why I'm bringing you back again. So you're not a quote unquote fly by night guy. So you guys have been doing the job, and we're pleased to partner with you on that.

Investment and Returns Overview

But you can talk around what you did in the past. That is the leasing side. I think that was very interesting. Okay. Yeah. So our first project was in Ilupido. So we got the lease for 15 years, we sold the one bed for 7 million, and we sold the two bed for 13 million. So what that means is the 7 million means you're owning the one bed for 15 years, and the 13 million means you're owning the two bed for 15 years.

Projected Returns of Current Investments

And by the end of this year, every single one of the investors would have broken even the one bede. I think the ultra 2023. And now they've earned an average of 350,000 to 400,000 monthly. And the two beds have been ending between 500 to 600k monthly on a daily rate of 45 day. Right. So at the end of this year, 2024, they invested. In 2022, they will be breaking even. And for the next 13 years, they will be enjoying profits right to the end of the 15 year channel.

Future Real Estate Developments

Then the second project in surreal was a 23 year lease as well. We sold the one bed for about 14 million. And the investors right now, because of the existing debts that were trying to, like, amortize, they should be earning well above 400k. But there was an inflation and we had to, you know, load in some chunk of money to complete the project. So right now, the return will be stable the first return was paid last month, which was about 320,000 naira.

Evaluating Return Stability

So we're looking at stabilizing that between, say, 350 to 400, despite the loan that will be deducted over the period. So the one in Ikeja and one in Antonio, we are forecasting between 700,000 to 1 million because it's going to be five star and we'll be charging way more than what we're currently charging in Pedro. That's perfect. Good to know. So, guys, we spent more than an hour here.

Conclusion and Appreciation

I think it's been fantastic. Once you guys send that stuff to me on DM, I will share. I think I get a lot of DM's. People want to know, really, about you guys. They want to know really and do their own research. It's a tight economy. Everyone wants to make money, but they want to make sure they're putting it in a place that is, you know, that is real and all. That's why I appreciate those sentiment. But guys, they are here on my space. I know them on a personal.

Investment Recommendations

Even outside the space, they are good. If you want to get into an investment, this is a very, very low ladder to get into that space. Like you said, you get your incomes monthly. The cost of you getting in is reduced. You know, when they did a lease and it was well reduced, people got in. Pugal paid. This was a way for it to get in. So I'm giving if it was my own. I know them, let's put it that way.

Investor Engagement

UC. I've got uC. Bishop, I don't know if they addressed your concerns. If not, send me a DM. Bishop after this, I'll make sure I get across you. But Bishop, are you okay? Yes, I'm okay. Well, I think they didn't answer the first question about regulation. How regulated are they? Yeah, so that we talk about what I mean, stock brokers are regulated. Is there any regulatory for builders apart from current, which is engineering?

Exploring Regulatory Authority

What are you looking for? When you say regulation, are you looking for like the company maybe at CEC? Obviously they are what would give you. No, no. I'm not talking about the builders as in, I'm talking about the business aspect. Are we sure when we invest and we have them around, even just running away and all that? That's what I'm talking about. I hear you, I hear you.

Investment Securing Practices

I mean, that's the. I mean, in the same Nigeria, you guys should be the ones that are going to be listening on the. On the growth board of the NGX, the growth board. I don't know if you guys are there yet, but this is the second tier market, isn't it? That way when you guys should be the up and coming folks, be there, be able to raise capital long term.

Potential for Future Financing

Imagine if you get equity capital instead of getting debt capital. I mean, that's a conversation to be had right there. Yes. So I think for the last person that asked that question about we not running away, see, I wouldn't blame him. Nigeria is very. Sometimes you can get your hands burnt. And I think one thing that has really stood out for us from the last illustration I made, if we had a deficiency of over 40 million and we had to put in our own capital to complete the project, because there's also an incentive for us.

Operational Incentives

The incentive is we are also making money in the operation side of business. So we are not just building and selling. So we ourselves, we are also looking forward to operating the business. Because if we don't, it means that we have. We have sunk in capital and the building is lying. Follow. The investors are not living there and we are losing money. We are growing the brand.

Brand Promotion and Awareness

You can just Google Crestville apartment. You see how much work we are putting in our social media pages. I mean, Instagram, TikTok, Twitter, it's everywhere. You would ask five youth within the ages of 23 to 35 that, have they heard about Crestville apartment before? I can tell you. One of them will tell you. Yes. So that's significant amount of work that we have put into that brand. And tomorrow we would not run away because we are building the 6th location right now.

Expanding Locations and Services

We are in Ilupeju. We have two in Surulere, the three star and the. The foster. The foster would have a swimming pool and a gym. We have one in Lekki that will be launching also this December. We have one in Ikeja. We're about 60% sold out. And currently we are. We are opening another investment opportunity in Antoni. So that will be the 6th location in two years.

Debt and Equity Balance

It has been a mix of debts and equity. So I think we have grown significantly. Like Dio said, we secured a credit facility from a bank as well. So I think at this point of our growth, what is really important for us is obsession for value asides.

Investment Overview

The investors that we pay monthly, we have about 500 registered agents. We have registered about 300 UNILAC students under our students partnership program. So that students also can be earning commissions off the shortlet apartment. So the structure that we have put in place is occupying about 30 apartments on a daily basis, right? So the structure that we've put in place. It can only go up from now. It can only grow up from. From here. We can't. We can't sort of tomorrow then run away with the money, so. But I would like that you do your due diligence. Check. Check Crestville, check am Realty, check our project. And I believe if you have any more questions, you can just slide into our DM on Twitter or Instagram. We will definitely come to the office, take you on inspection tours, and you see all of these things yourself. Thank you.

Contact Information

Yeah, and I'm going to share all the contact information now. The Instagram handle the website, even the contact phone numbers for a doctor, for Debola. So if you want to contact them, you can. I'm going to share it on Twitter. So you can just go back after this and get them. Yeah, no worries about that, guys. uc. Uc, I think you're going to be our closing guy. let me see. Uc. Go ahead. What's your mind? Yeah, hi. Good evening, everyone. my name is Uchina. So I think I invested in Crestville. Right? So, like, this is for people who are asking about, you know, like, investors and all that invested in Crestwell Pedro. I think then it was about 7.57.5 billion and then paid, like, 2 million for furnishing and all that. So I want to say that, I mean, since the Crespi liquid launched, I've been receiving my monthly commissions.

Personal Experience with Investing

In fact, even before I invested in it, I had to get a lawyer. I asked Mayowa lots of questions. He had to provide a lot of answers for me. I think. I would love to say that's one of the most important investment decisions I made, even though I'm yet to be involved in any of the other projects like the Crespi U two in Sirilire. I think it's also one of those investments that I really wished I had also invested in, because then the prices were not as high as they are right now. So, yeah, this is me now telling every other person here that if you're interested in this, just do your due diligence, just do your research as much as you want to. But they are legit, and I'm also, like, a beneficiary of them. I received my September monthly payments on the.

Monthly Payments and Benefits

Was it third or 4 October? And it was about 306,000 naira, just free cash. Nobody calls me to tell me, tap is. Water is not running the tap. There's no generator, there's no fuel. This one. So nobody calls me to tell me any issues at the end of the month, I just get, like, a report and then I get, like, the companies, you know, target for the new month and, you know, some of the strategies that they actually employ, you know, to do all those things. At first, when I heard about it, I was actually looking for, you know, an opportunity like this to get into the shortlet. I have one in. I have one on the island. But I'll tell you for free that. Marijuana and his team, they do a.

Service Comparisons

Better job than, you know, than the one that is even on the island. Right. That's how. That's how crazy, you know, Mayowa's marketing really is, right? Yeah. So, yeah, just by two cent. If you have the funds, right, do your research, but also, you know, like, feel free to jump into it. They are really solid guys. Yeah. I wish I had money to do, like, in many of. Invest in all of their properties, but, yeah, that's just it. Thank you. That's fantastic. From an actual investor coming to speak. Fantastic. Good job, Adebola. Very, very good job. Yeah. Thank you. Yeah, I'm not sure. Do you want to share the phone numbers on Twitter?

Project Details and Clarification

I got the phone number. I've shared the handle on X. I've shared the website. There was a, there's a phone number there. Is that sharing? Okay, I can. Yeah, I can just even, like, call it for anyone that wants to have it. 0810 816-399-2451 that's. That's my personal number. And one thing I've tried my possible best to do is I keep our investors so close, right? So I have their WhatsApp contact. In fact, I sent them link personally to join this Twitter space. So we talk every now and then. So we are never distanced. Even, even the look page. Investors that invested far back, I think I've not seen uche in almost a year and a half now. And I'm happy that it put say a lot of good things about her.

Operational Insights

So you can always reach me. You can call me. That's my WhatsApp number and my Instagram everywhere. Adibulumayawa. You can check Instagram, Twitter as well, even if I'm not as active on Twitter as I am on Instagram. But zero. 816-399-2451 WhatsApp and mobile call, you can always reach me. So I saw a question. I saw a question in the. This. We are scumo certified. That's one. But we are not a reit. I need to make that very clear. We are not asset managers. We are not a reits. I need to make that very, very clear. Why? We do not risk. We are not an asset manager.

Investment Clarity

We don't manage. Our strategy is completely different from that. We oversee or supervise the facility, and we market that. If an asset manager is managing your portfolio, they don't even talk to the. They don't go there to see what they are doing, go to the factories or all of that. So what we are doing, we are operators, okay? And we are not a closed end fund, like a REIT or something like that. So that's completely different from what we do. I just want to make that very clear. So, because I saw a question in the comment section, so I think that should be clear now. But we are como certified.

Regulatory Certification

Okay. What's como, just what's common. Okay. Yeah. It's like a money laundry certification from EFCC to verify the investment activities of the firm. Perfect. Perfect. Okay. Excellent. All right, guys, I think we've covered the floor. You've talked about what you've done, then you've talked about what you're doing now. We'll compare this with other investment classes. We've taken questions, lots of great questions, I would say. And when people ask questions, it shows us interest. So I love it. And I've also brought in, you know, a verified user, satisfied with the project, can come up here, put his handle on, and say, listen, I invested.

Investor Feedback

I've got my money. You guys should go and invest. That's what we want to see, you know? You know, that's show and tell. And you guys have been perfect. Like I said, I wouldn't bring you here if you were not. So I'm happy about that. The whole idea, guys, to give you options. Options with your naira. Naira is high inflation. There's a dollar issue. What can you do with your naira? Where can you put it to make more for you? Where can you put it to keep it safe? That's all we do here on the space. Every Sunday, 07:00 p.m. west african time. I think we've done great.

Future Discussions

I have two guys that want. Let me see if I, if we can just add them and then go from there. I've got shoes, and I've got this gentleman. Ola. Ola. Shoes then. Ola. And shoes. That's real quick. Then we'll just close down. Ola. What's on your mind? Good evening, everyone. Yeah, hi, ola. Yeah, I'm good. Thank you. Kanu, how are you? Thanks. For bringing me on. Thank you sir. Mayo wa right. And the other guy blackjp or something. Yeah. Can you guys hear me? Yes they can. Yes. Loud and clear.

Participation and Networking

Yeah. I think you guys contacted me sometimes. Was early last year. It was on this space on cardinal space that we met as well. And since then I've been following you guys because they're quite unfortunate I couldn't partner with you guys because I've got something huge going on for. For myself as well. So. But recently I sent someone to your property. The one in el Suru lady because a friend of mine lives in surule. So each time I go to Nigeria I usually stay in Ikeja gr but because this new property of yours is not far from where he is.

Feedback on Property Experience

So I decided to. I would stay in surlee so I would be closer to him. You know something like that. And he was excited. He went over. But the only issue which is not biggie but at the same time it's big is because considering the number of apartments you have in that. The one in sully the parking is not. Is not good enough. Okay. Okay. Okay. Yeah. I. I. In fact you know those two projects were lease right. And to be honest with you a lot of our customers to be honest with you a lot of our.

Parking and Future Projects

We have never had an issue with parking. I think for the entire building there we have about five to five parking spaces in the premises. Then about two parking spaces outside. And usually most of our customers just come in Uber and they leave. But one thing I can tell you is we have also improvised you know in our future projects. The one in Ikeja is 1000. Entire ground floor would be parking. That would take about 25 cars. The one in Antoni is about 1500 m². That would take about 35 cars. So for other projects that would have higher standards like I said that's supposed to be 3.5 star.

Pricing Strategy

The going rate is about 45,000 per night. But the ones that we're looking at doing because we want to attract another class of nigerian markets, diaspora markets we have to of course improvise in our own amenities and we prioritize parking as one of the most important services that we'll be having. So that would be the last project that would have a limited parking facility. Thank you. Thank you for that as well. Thank you guys. Cheers. Yeah that's just it. Perfect. Thanks for that question. Let's get shoes. And after shoes we just call today shoes and jeans.

Closing Remarks

Did I get that right? Let me get ready. Shoes and jesses. What's up? Going once, going twice. Hey. Hey. Good evening, everyone. Yep. Hi. Yeah, good evening, mister Carlo. I must say, you're doing a great job here. I think appreciate you a lot. I came in late here, so I didn't really get much. I just want to ask what is the minimum investment fee for someone who would like to start up with this project? So that's just my question. I appreciate you guys. So minimum to buy into the one.

Investment Scalability

Maybe you should go get. Maybe we should just get the price list again, guys. What's the, what's the cost of the one bedroom? Cost of the two bedroom? Should. Maybe we'll get that again then. It will. Okay. All right. So currently all the lease projects are all sold out and have been delivered. So what we're currently selling are the ones that you own outrightly. So the minimum investment property is the one bedroom, which currently is going for 50 million. You can, we have started the project already.

Construction Progress

We have concluded 115 piles that has been. We have completed the foundation phase as I speak. So you can always go and check. If you have anyone in Nigeria or if you're in the country, you can always go and check. The one bed is 50 million, the two bed is 75. So those are the two offers. And the one in Antoni will be launched next week. I could send in details for any investor that we're willing to key in early. Guys.

Flexible Payment Options

All right. Yeah. So let me just chip in there also that even though the price is 50, right, there is a payment plan. So you don't even need 50 million naira outlays. So I think for the one bedrooms, you only need about 10 million to deposit and then you can spread the rest over the 15 months period. Over a 15 month period. So I think so you can always contact our team to give you more information on that. You can dm some of the accounts that here, they will drop the phone numbers in the comments and all of that now.

Investment Accessibility

So you can reach out to them. Of course, you do not need to make that 50 million naira outlay upfront. So I need to make that also clear. Thank you. All right. Excellent, guys. All right, guys, let's just get closing remarks and then we'll just call today. It's been a wonderful session, I'll say so myself. Okay. Really nothing much to say. But one thing I would say is for us, we are really driven.

Operational Philosophy

We are very youthful. I bet you wouldn't want to guess the average age that works with asset house. The company superseding this project. But we are very youthful, driven, and we're obsessed with value creation, not just for our investors, but, you know, we have added so much value to the economy, investors, direct and indirect labels, and we want to keep doing this. This is what really drives us. We really think there's investments that can be properly optimized and that's what we are focusing on.

Future Opportunities

Any investment class that we will decide in the future that we will be doing. We just want to ensure that we're creating optimized value. So I already put out my number. You can follow us on Instagram. Twitter would ensure that responses are attended to very swiftly. Thank you very much for joining. I hope we will have this space again before the end of the year by the time we launch the other two projects in Lekki. And thank you. Excellent, guys. Thank you so much, guys.

Real Estate Discussion

Hey, guys, we're talking real estate in Nigeria. How to get it right. I mean, we've talked with realty points now. I mean, they've been talking about leasing now with purchase and earn. I like what I've heard. Constant cash flows to you as the investor. You own the property. You don't have to worry about the maintenance and all that. It's yours. You just sit back and you get the cash flow.

Investor Returns

That is the returns coming back to you as compared with other asset classes in Nigeria. This looks good. Plus you get the compounding, plus you get the asset appreciation. So it's a way into that real estate ladder in Nigeria. It's perfect for folks that want to get into real estate but don't want to be landlords, to go and collect rent and to go and fix anything. It's perfect for you. I like it.

Support for Young Investors

I like what they're doing. When we see young folks doing stuff, we got to support them. And I'm a big supporter of what you got to do. So Debola and your team, thank you so much. I wish you guys the very best. On that note, I'll see you guys again next week. We have some stuff planned for you folks. So planks, hang on. Always tune in here every Sunday, 07:00 p.m. when we're of course talking money, the capital market and of course the economy, it's tough in Nigeria right now.

Economic Challenges

We get it. Fuel price is going to go up, dollar is also going up. You've got to work for your ie. You're going to make the funds that you have work for you. The way you hedge is to keep on growing the returns you really can't save. You have to try to earn more than the inflation. I think. That way you can come off with a real rate of return. It's tough, but do it simple. Don't take excessive risk. Just do it simple.

Final Advice

Watch. You understand? Start from there and it works wonders for you. On that note, guys, let me let you guys go in. Get a good night's sleep. Monday comes. Be safe. Like I said, keep it simple and take care of yourselves. Thanks, guys. Illuminate.