This week I got a very fascinating question from one of my blog readers –
Although I get this question a lot, but this time, it’s little different –
If you had N50 million naira to invest today, what would you do with it seeing that we are in the middle of recession and the paper market (stocks, bonds, Treaaury bills etc are giving us sleepless nights.
As I said, this question is very common. The amount varies depending on who is asking the question, going from N500,000, N5 million, N50 million N500,million and even to 1 billion.
This last one is a little unique because it has to do with investing in a down economy – Recession.
The question itself introduces a restriction, in other words, the question is directing you to a limitation of yourself based on your money only.
The most successful Investors actually make money by seeing what others don’t see and taking the advantage.
Or do you want to be doing exactly what every other person does and different result? No way.
You either do a different thing or you do same thing differenyly.
The quickest answer most people will give you might sound like. – Invest in real estate. Just buy property. Properties appreciate in value over time.
Most times their answer sounds like this – use the 50million to buy a house in Ajah and become a landlord. You will never pay rent again.
This is exactly what developers want you to do and agents want to earn their commision too and we can’t blame them for that
A good answer might might sound like – use this money to invest in a smart deal that will guarantee higher returns.
Now, A better answer is to understand what makes a smart deal so that you are able to identify one on your own.
It is said that smart deals are influenced by two major things -Timing and Location
Many people fail in real estate investing because they always plant in good soil but wrong weather and others don’t know how to calculate numbers.
This means that they either mis-time or mis-calculate the deal, although they got a good location
By understanding real estate Cashflow and Capital Gain, you will be able to find deals on your own but you need to first educate yourself on investing before risking your hard earned money.
And if you are so busy to getting this education, then it’s easier to align yourself with an expert whose interest is tied with yours.
You can identify an expert who have your interest by asking specific questions. This questions will be featured in my next blog/newsletter.
While anticipating for the next blog, I would recommend you see Five Most Important Questions You Must Ask Before Investing In Real Estate and 7 Biggest Mistakes To Avoid While Investing in Real Estate
“ When intelligent people read, they ask themselves a simple question: What do I plan to do with this information?”
— Ryan Holiday
Anthony Cee is a real estate experts on a mission of helping real estate investors achieve higher returns on investment.