Determined to advance the cause of real estate sector in Nigeria by providing market direction and analysis, Lagos Business School (LBS) and Fine and Country West Africa International have entered into strategic partnership aimed to offer insights into financing and investment in the sector.
The partnership is also out to address one of the biggest misconceptions about real estate investing which is that the investor needs to have a lot of money to get started.
The secret that many professionals don’t understand, however, is the fact that there is a multitude of different real estate financing options available to fund every investment and, according to Udo Okonjo, CEO, Fine and Country, the method in which a specific deal is funded can greatly impact its outcome, making understanding of the financing aspect very important.
Okonjo pointed out, in a statement at the weekend, that, as an investor, there was a number of ways to go about financing real estate investment. “Each one will have its own set of pros and cons, and the financing approach will depend on the property and the situation. For beginner-investors, it’s important to remember that not all financing options are created equal”, she said.
In real estate financing and investment, what works for one person may not necessarily work for another, but the trick is knowing which real estate financing option will complement one’s business strategy.
By taking time to research the various real estate financing options out there, new investors are sure to realize how accessible investing can be. Broadening one’s toolkit of financing options is simply a matter of being knowledgeable about what strategies exist, as well as proper ways to leverage the
Okonjo encouraged prospective investors to speak with a professional real estate advisory firm before making a decision to invest in real estate, noting that there were three financial options prospective investors could leverage for wise investment.
One of such options is cash financing which is good for investors who have access to a significant amount of capital, either personally or through their network, and wish to purchase properties free and clear.
The second option is hard money lenders which are accessible to investors who have less-than-perfect credit or financial history, and are in need of a short-term loan. The third option, Okonjo pointed out, are the private money lenders. She explained that investors who are well-connected can often tap into capital from personal connections, borrowing money at a specified interest rate and payback period.
The LBS-Fine and Country Real Estate Leadership Programme is a 4-module programme launched in 2018. This year’s module, which is slated for July 17-19, 2019, is the third in the series. In its first module, the focus was on Real Estate Development while the second was Real Estate Marketing.
This year’s module which focuses on Real Estate Finance and Investment Programme, is designed to equip participants with the essential skills needed to evaluate investments in property through sound financial analysis with the view to making well-informed investment decisions.
Expected at the event are notable players in the real estate industry including Hakeem Ogunniran, CEO of Exemia Realty; Paul Onwanibe of Landmark Africa, Ogechi Adeola of LBS Faculty, Charles Otudor, Femi Akintunde, CEO of Alpha Mead Group; Andrea Gedag, MD of Elalan, among others.