Happy new year, folks!
2017 was an incredibly challenging and rewarding year for me in a lot of ways, and I’m sure you all can say the same. I will talk about my year and what was arguably the biggest challenges and the biggest gains in further posts. I also had a massively busy one month trip to Nigeria, which is why I haven’t been able to write on here all this time. I’ll update you all on that as well. For now, let’s talk business and 2018!
I have essentially three things on my plate for this year. The first is personal. The second is to grow and scale out our business operations at bitkoin.africa which is the peer to peer platform my team launched last October to give you all a secure, trusted and automated platform to buy and sell the major cryptocurrencies in Nigeria. If our customers are to be believed (and they are), it’s the best out there. If you’re still out there struggling with Localbitcoins, you don’t know what you’re missing. Try it out! 2018 is the year to trade crypto, and trust me, we’re bringing some fun things your way.
The third thing I have on my plate is something that should excite you if what you’re looking for is a safe, less risky and stable investment opportunity in the U.S that can produce both cashflow and capital gains for you. It’s something I was sketching out in this post on how to build long term wealth in real estate back when I was still doing my due diligence. The good thing is that I moved from theory to practice, by getting a partnership together with a friend to purchase a property within the area. Because it was a bank owned REO property, and due to the peculiarities of the auction process I bought it through, I ended up getting it for far below it’s full value (almost 40% discount according to the appraisals I did). The property was purchased in a solid neighborhood where it was the only vacant spot, and even when I was checking it out, there was a stream of potential buyers coming in right behind me as I left. It stayed on the market for far less than a month. What more, due to the price I bought it, my rental income yield on the property (essentially the cash on cash return) is close to 14% which is far superior to what most people will earn in a year anywhere, naira or dollar, stocks or not. That does not take into account the capital gains. Since we own 100% of the equity on the home, I have an arrangement with my bank to give us a loan up to 75% of the full value of the home, which should provide a nice payout that we’re going to use to purchase another house. The loan payments can be paid off through the monthly rent, while the money I’m losing to the bank is more than replaced by the new rent I expect from the second property. This is a process I can repeat for as long as it takes for the real estate market in the area to advance to a point where I can sell the portfolio for a tidy profit and pay off all loans. The real estate market in the area is currently growing way faster than inflation at 5-6% annually, supported by an influx of manufacturers like Samsung, BMW, Michelin, Brembo and Boeing who are attracted to the tax and business friendly policies of the Carolina states, and bringing workers with them. So in four years, real estate prices in this area should be on a solid enough high to compensate investors who get in today.
Because I want to take advantage of this opportunity today and because I do not have the wherewithal to go after the inventory that I see within this area all by myself, I want to raise around $500,000 from investors to pick up as much inventory as we can. I could go it alone, as my first deal has already proven and maybe do one deal a year as per my capacity but by that time, the market would’ve climbed and made it harder to find these deals now. A limited partnership with a pool of investors on the other hand would easily jump into these opportunities and rake in far more profit today, and I’m content to keep a small cut. The goal is to build a long term business and give people more options on how and where to invest for the long haul. And we realistically expect around 20%+ annual return, conservatively in this venture, which means we expect to turn $500,000 into north of a million in around 3-4 years. I can almost assure you we’ll do better than that but it’s always better to have lower expectation. Less chances of being disappointed.
Ideally, you’d be interested in this if you want the safety of the U.S., relatively lower risk of real estate investments, stable cash and capital gains returns in dollars and an opportunity for sustainable capital growth and wealth building. Over time, we will branch into more areas of the industry and who knows, create a large scale real estate business. I try not to think too far ahead with these things. I just want to put capital to work, yours, mine, whomevers.
And I specifically chose to go after this because I want to reduce my stress this year, and this is a low maintenance type of business that I can invest considerable energy into without taking away from the rest of what we plan for 2018. If you’re interested in this, hit me up on twitter @eldivyn or email me at eleanyaurumeke at gmail dot com with “REAL ESTATE” as your subject to make sure I actually read it rather than automatically mark it as spam. We can talk about it from there, share more detail and so on.
We have a few other things going on, some of them more stressful than others and some of them more rewarding. The final piece of the pie is to launch a website that can help us coordinate everything we’re doing in this regard so that it’s streamlined and easier to manage, freeing me to do more time intensive things.
I look forward to this year with great expectation! May it be a positive, life changing one for all of us. Happy New Year!