Where to find real estate deals

Where to find real estate deals

JUNE 17, 2014 BY ABIODUN DOHERTY

Opportunities often locate those who know where to look for them and what to do with them. Real estate investment is no different. It is very rare for opportunities to fall into the hand of the unprepared but that is not impossible.

However, when opportunities come to the unprepared, they are often wasted. Real estate investment is about locating the investment that is good for you and will return you a profit. It requires focus, dedication and serious hard work. In this regard, working smart is better than working hard. It is better to go to where the fishes are than to swim in unprofitable waters. To be successful in real estate investment, you need to know where to find good deals and what to do with them.

One of the easiest places to find good deals is at the land bureau of the various state governments and the federal ministry dealing with land and housing matters. It’s amazing how often we miss out on the opportunities that seem closest to us.

The government is often overlooked as a source of good deals but surprisingly, they are. There are several real estate projects that you can enquire about and tap into. Some are built up; some are in progress and some are just parcels of land already set into plots by the government.

To access these projects, all you need to do is to visit any of the government land bureau and ask them for the available schemes as well as the procedure. Often, it starts with the purchase of an application form that must be submitted with some other documents. One of the documents you may be required to submit is the evidence that you are a tax payer in that state. The process may be full of bureaucracy. You will need to check regularly and monitor your application. If the property is located in a prime area, the process may be very competitive.

If you are successful, you will be given a letter of allocation specifying the size of the plot or the description of the property, the various fees you are required to pay, the time within which you are expected to pay and the condition of the allocation. However, if you are not successful in your application, it is important to note that there is often a secondary market. There are individuals whose circumstances or preferences may have changed by the time they get their allocation papers. They may decide to pay all government charges and then sell it. Alternatively, they may look for buyers who will pay all the government fees, pay them a little more on top and then you will need to perfect the title in the seller’s name before you can perfect your title to the property.

Another source of real estate deals is your bank. Many bank customers are basic in their view of what the bank stands for. Majority of bank customers will not bother to access several other services offered by the bank. Consider yourself. When last did you walk up to your banker to make enquiries on how to access a mortgage? Many people never do.

The bank is in the business of lending money to businesses and investors and making money in the process. Most of the money lent to individuals and businesses are secure with real estate. Whenever there is a default on the part of the borrower, the bank, subject to certain conditions, is empowered to sell the property. And it is not compulsory for the bank to sell it at the current market price. The bank is permitted to sell it at what is called ‘a forced sale value’. If you ask your banker, it should be able to provide you with details of such properties available for purchase.

One of the good developments in real estate investment is the emergence of co-operatives in many companies. Many professionals and workers are discovering the power that comes through pooling funds together and investing in real estate together. Many of these co-operatives have invested in large tracts of land much more than the requirements of their members. They often use the size of their intended purchase to get good discount from land owners.

Although they give their members first choice, they are also open to a non member who is ready to pay.

An investment in this type of land enhances security and accelerates development. The joint development of infrastructure by the subscribers to such projects often leads to appreciation in the value of the land.

Over the years, many of such projects have turned into massive profits for their initial subscribers. Even an investor that is self-employed can benefit from such projects by asking families and friends who are already part of such groups whether it is possible to be part of the project.

Another good source of real estate investment deals is the daily or specialised (real estate) newspaper. Many of our national dailies have specific days when they feature property adverts from various real estate companies and professionals. There are also online property advertisements on the Facebook and other social media platforms.

This works both ways. You can look for property adverts that suit your request and you can also ask for people to send you a list of properties that suits your specification. Either way, the principle of ‘ask and it shall be given’ always works.

Source: Punch Newspaper