“You Can Enjoy Rental Income without Owning a Property”
Founder of Africa’s Property Investment Group, Mr. Chudi Kalu, in this interview with Mary Ekah, speaks about investing in the real estate business as the surest way to building and securing one’s future, providing insights and latest money-making tips in the property market in Africa, among other issues
How would you describe Nigerians attitude towards investment in real estate?
So far we have realised that people fear that the recession in the nation will stop them from investing in property. But that is not the case because a lot of people are already taking advantage of real estate investment because they know that the way to come out of any form of recession is when they enjoy consistent cash flow. So a lot of people are investing in real estate at this particular time.
That is why we have been holding a lot of seminars and workshops lately aimed at opening the minds of investors to how they can change their financial levels for better by investing in real estate, the opportunities that are available to people and how ordinary individuals can take advantage of the investment opportunities available within the real estate sector without having to break the bank. And I think that for real estate industry to grow in Nigeria and for property business in Nigeria to be activated properly, investors should come in; and we cannot always expect foreigners to invest in real estate in Nigeria, we the local people should take advantage of the opportunities around us.
You have had series of conferences and workshops on real estate lately, what is the driving force behind all these?
We at AFPING are trying to give everyone an opportunity to invest in high quality real estate investment. Presently we have projects in Surulere, Yaba, Ijesha amongst other areas in Lagos and elsewhere. We also have some UK projects that we are pursuing at the moment. Anybody can take advantage of these opportunities and you don’t necessarily have to live in the UK to invest in the UK. To this end, we have been doing a lot of coaching on real estate investment and how people can take advantage of the rental market. We are particularly focused on educating people on how they can enjoy rental income without owing a property of your own.
People keep wondering if this is possible. It is actually very possible if you understand how it works. Now because of the challenge of buying property in certain areas, a lot of people have lost money because of “Omo onile” and they bought property expecting that some of those property will appreciate but after 10 years, they probably do not know where the location of that property is and at the end they would realise that they must have been duped. So it is better to play within a particular market where you can easily take advantage of. Now how do you participate in the Lagos market for example without getting your hands burned? At least we can see the population.
When I see the Lagos traffic, I get so excited and then some people wonder why I am so. I feel so because as long as there are people within town, rent will continue to go up. And what drives rental income for landlords is the number of people that lives in a particular area. And how do I as an individual participate in that game without actually owning a house is what we have been able to figure out at these seminars and workshops. When you go round that, you see a lot of property that are empty and also property that the landlords do not have the required funds to put them in good shapes because they probably do not have a regular income and yet the property is within a good location.
All one needs to do is to invest in such property and renovate for better rental charges while both the landlord and investor share the profits. So, as an investor, you do not have to buy the property to share in the profits, All you need to do is just to invest some money for its renovation and then in return get huge rental income. That is what we coach people on during the seminars and workshops that we have been holding lately and you don’t have to be an expert in the industry before you can earn rental income but all you need is to have a little fund on ground.
According to statistics, we have 17 million housing deficit in Nigeria and if every household pays a hundred thousand naira from the 17 million housing deficit that we have in this country that will be more than 17 billion naira annually. So I would say that the deficit we are facing in the housing sector is an opportunity and not a curse.
And it is those people who see the opportunity within that market that would take advantage of it. If they say we have about 17 million housing deficit, what it simply means is that you have 17 million families who are ready to pay only for kind of houses they can afford, so that means that if anybody has the houses that fit their needs, they would be willing to pay. So the deficit is an opportunity for only those that see it as a business opportunity and can then thrive on it.
So it is a missed opportunity for me if I do not invest in such market. So real estate is a big market not just for the developers but also for people who can see opportunity in that area and grab it and this can only be achieved when I use my money to do renovations on some of these properties on ground.
Many people have properties but they are still poor merely because they are not thinking creatively nor taking advantage of the immense problem of housing deficit and then convert that problem to their own advantage; and that is what our seminars and workshops are all about. We are trying to teach people how they can take advantage of the housing problem in Nigeria. Every problem is clothed with opportunity and how you take advantage of that opportunity is what this is all about.
How would the common man who could hardly save the miniature income earn benefit from this?
There is a scheme we have been doing for over four years now, where by certain people can put funds together to own high quality real estate investments. For example, there is a particular project somewhere in Ikeja that requires about N22 million. Now, if I come together with like 10 other people and together we raise N22 million, we all can buy and renovate that particular property and start enjoying cash flow from it. It simply means that 11 of us will share the profit based on the returns we get per year. That is what we are currently offering people right now, taking it to the market place, so that people can take advantage. We have already people buying into the idea and investing in real estate.
This also means that if I want to invest in a property in Lekki, I don’t need to have all the money for the property to invest in it, but it simply gives me an opportunity to invest in high quality real estate investment that may take me so many years of savings to be able to invest. So, we don’t just want to make opportunity for only those who can afford to buy plots of lands to make money, we also want those who have little means to also be able to invest in properties and make money. Why is it that it is easier for plumbers to own houses while a banker remains a tenant for a very long time? This is so because the plumber is thinking in terms of cash flow while the banker is thinking in terms of building and owning and so he waits for so long till he is able to save a huge amount to buy or build a house.
This is information that people in this sector may hardly want to give out so freely. So why and how are you doing this?
I have been using every platform available to me. I have been using the social media a lot to create awareness and I have been crazy about it and I know a lot of people that have taken this raw information and duplicate it for their own benefits and presently are having numerous properties around town.
This is to tell you that this actually works. It is better we cover this nation with success than preventing people from being successful because a lot of people have success but hide the secret of their success from others. The real estate market is too wide for me to hide anything. We have over 17 million people having housing problems in Nigeria; even I alone cannot serve half a million people. The market is too wide so there is no need for competition.
We hold seminars regularly on this. We just concluded one last week called the Rental Income Plan. It is all about helping people to understand how they can do these things on their own. People can be part of this by registering on our website, www.afping.com. We are thinking of holding these conferences at least once in two months, where we gather people in a class to learn. They don’t have to be real estate experts but those who are ready to take the opportunity in the real estate sector.
Husband and wives can also take advantage of this. We also do one-on-one training, leading people by their hand and helping them to explore the real estate market. And if someone says he doesn’t have the time because he has a regular job, then he/she can invest with us and grow with us. And investing in real estate is predictable, tangible and indestructible. That is why I am inviting everybody to do it and you don’t necessarily have to invest with me, you can do it on your own. I started doing this when I didn’t even have full information about the sector but for the fact that I had opportunities. So those whose eyes are opened to opportunities can take advantage of the real estate market.
How do you guarantee security for such investments and is the training free of charge?
Some amount of money is attached to the trainings because we bring in experts to coach these people. And the training one gets involved in also determines the amount one pays. When it is a class, that is a group of people, we give discounts. So the fee ranges from 50,000-750,000 naira depending on which class you want to attend. We also do executive class whereby after the class, you can pick a particular property and we would guide you by the hand, that means that we would follow you to where the property is, secure the property, negotiate the deal with the property owner and then show you by example how we do it.
And talking about security, we have, in the last seven years, been privileged to have sold more than 2,000 plots of lands; so what we do is that the same way we secure people’s property is also the same way we secure people’s investments. So you are not investing into any real estate project that is not insured. We are working with several insurance companies to ensure that people’s investments are secured and that they do not lose their investments in case of negligence on the part of the developers. So that is one of the ways we are guarding against people experiencing loss in their investments.