This document provides a 12-step process for creating growth and cash flow through real estate investment. The steps include understanding income-producing assets, getting stable housing and employment, fixing up seemingly poor properties, understanding costs, going from renting to owning properties, immediately relisting properties at a higher price after minimal improvements, repeating the flipping process on more expensive properties, eventually acquiring apartment buildings or commercial properties, and focusing on passive income. The overall strategy involves starting small with property flipping and working up to owning larger income-producing assets.

1. GROWTH AND CASHFLOW IN
REAL ESTATE INVESTMENT.
gtextgroup.com/homes/sapphireestate

2. TRAINING & CONSULTING
• Real Estate Investment
• Development Appraisals
• Financial Analysis
• Asset Management
• Cashflow Analysis

3. What really is Land or Property investment?
Land or property investment occurs when property is purchased from a
seller, that is not familiar with the real estate market, and the buyer then
quickly resells the property for a large profit. When properties are
flipped, usually minimal, if any, improvements are made to justify a
higher price.

4. Many are making huge profits from real estate
investment which some people will never make or
keep on loosing because they fail to take into
consideration little things that seem unimportant
but are very valuable. These are the various things
to take into consideration when going into land
investment:

5. THESE ARE TEN STEPS TO CREATING GROWTH AND CASHFLOW IN REAL ESTATE
INVESTMENT.
1. Understand that lasting wealth is generated by owning income producing
assets.
Assets are things like: rental houses, rental apartments, businesses, trademarks,
copyrights, intellectual property, land, commercial real estate, and the list goes on
and on. Just drive around. All the businesses you see and use, the apartment you
rent, etc., they’re all making someone rich. Who? The one who owns them.
So you need to understand that if you get income producing assets, you will make
your money work for you, plain and simple. Generating long-lasting wealth is very
possible especially when you generate income-producing assets – the kind that will
keep your money working you even when you are asleep. This is the secret of all
self-made millionaires and world’s richest men.

6. 2. Get yourself a place to live and a job, or a source of basic income to
get you by on.
If possible, get yourself a car also. If you’re not at this point yet, that’s
okay. However, ideally you should be at least living in your own
apartment and having the basic foundations in place. The reason for
getting these foundations in place is that before you go into a quite
capital-intensive business, you need to be quite financially stable
especially in areas that have to do with the basic needs of life.
Land /Property Investment is not really a business to get into to start
your life because it requires patience and time to study and understand
the market before you go in and start making profits. But, trust me, the
returns are always worth the time of study put in to become a pro at the
real-estate business .

7. 3. Have an eye for fixing and renovating seemingly poor but good buildings.
There are so many houses and apartments that look unattractive but only
need a little fixing here and there to raise their values. Their paints may be washed
out and you easily conclude they aren’t worth any trouble, but not until someone
snaps them up and turn the buildings into goldmines. The ones that are the easiest
to fix are constructions with peeling paint, holes in the wall, stained carpeting, or
even trash in the yard.
It is necessary to keep in mind that these houses do not look attractive to most
buyers and this is why real-estate investors see them as possible gold mines. It
helps to use your imagination while viewing these homes or apartments, if you can
visualize the finished product in spite of all the negative things around one gets to
see at the first glance, and you are convinced you will make a kill, then go for it.

8. 4. Avoid properties with structural problems if need be.
No matter what every building professional may say to get relevance, the most
important thing in a building should not only be the space organisation but
the structural disposition of the building, so if the need arises, you can avoid one
with such problems when choosing a property to flip or better still, you can consult
an engineer – precisely a structural engineer – to check the stability of the building.
On the other hand, services renovation like plumbing works and electrical
works are okay if you are considering what to look for. Plastered walls peeling off
can also easily be re-plastered and painted.

9. 5. Understand the real estate market.
Real estate business like every other business requires you to have a step by
step knowledge of how it works. Don’t just jump into it blindly, find out where and
how you can get the most profitable buildings you can flip. No doubt the
properties in highbrow areas in Nigeria usually exceed expectations of investors in
real estate. Imagine a plot of land in Banana Island that was formerly sold for N32
million naira just within three months, rose to N60 million check out the profit.
You can begin by looking at landed properties and houses for sale in your area.
While it is important to keep track of sales and how long the houses take to sell, it
is also necessary to ask about the terms of these sales, since this enables you to
understand how sellers tend to market their property. You also need to understand
that properties in rapidly developing areas always appreciate fast.

10. 6. Consider adequately the costs that will be incurred for each deal.
It is very important to take cognizance of the costs you will incur both real and
hidden or virtual costs when purchasing any landed property for flipping. Almost
every home will require you to spend some money before the deal is even
finalized.
It is a good idea to plan on writing out checks to the title company, government
agencies – such as recording fees, your attorney, and an application fee for a
mortgage (unless you are in a position to pay cash), and any other closing
costs. These costs are called the acquisition costs.
During the period that you own the home you can expect quite a few
expenses called management costs towards property taxes, utilities, lawn
maintenance, homeowners insurance, mortgage payments, and many more. The
longer you keep the home, the higher are expenses you are likely going to incur.

11. 7. Go from renting to owning.
This is a mental barrier for some real estate investors that really needs to be
broken, just as much as it is a practical step to becoming financially successful in
the land or property flipping business. So if you’re renting a home or apartment,
chances are you’re making enough money and have good enough credit to qualify
to move into a home. Call up some realtors and let them know your situation. Tell
them how much you pay in rent and tell them that you now want to own. Even if
you need to downsize to a smaller condo or whatever, just do it. The key is, you
need to own.
Know that you may have to take what you can get. This often means buying a
home from a seller who perhaps owns the home free and clear and will allow you
to do perhaps a lease option, or carry the mortgage for you. Alternatively you get
the seller of the home to carry 25% of the equity in the form of a second mortgage
and then go to your bank to get the “first mortgage”.

12. 8. Immediately re-list your new home at at least 10% to 25% higher than what
you paid for it.
That’s where finding a deal comes in. You should have bought the home or
condo at 10% to 25% discount knowing that you could immediately re-list it at that
much more. Make it all nice, without spending much on it. Don’t do any major
renovations. Just re-list it higher and decorate it nicely like you see on those shows
like “flip this house”.
You can get good ideas from places like: showhomes, magazines, TV shows,
Internet, etc. Remember you need to do all your calculations. Factor in everything,
all your expenses so that you’re positive to make that 10% to 25%. So let’s say on a
very basic entry level, you got a home that cost you N2 million. You immediately
re-list it and make 10% net profit in 90 more days. So you instantly made about
N200,000. Now don’t you dare spend that money!

13. 9. Start looking for a nicer and more expensive home to flip.
It still has to be one that you can get approved for a mortgage; unless the
seller is willing to carry the mortgage, in which case you wouldn’t need to qualify
which is another good scenario to look for.
So let’s say you find another property for N4 million. You put down 5%
(N200, 000) and the rest is financed either through a bank, or by the seller
themselves. Now do the same thing over again. Make it pretty, without spending
much if anything. Re-list and try to make at least 10% net profit

14. 10. Repeat the process a few more times.
Chances are strong that the least you’ll be able to make on a flip is about N1
million as you begin to go for more expensive and choice properties. Beyond that,
it can become very difficult to flip, as one would want to stay in the 3 bedroom, 2
bath homes that the majority are buying so, when you buy, you need to re-list
move the home fast to avoid temptations.
Continue the process for a second year. Start to flip homes continually and try to
make between N500,000 to N1 million per flip. Now you should have gotten about
N4 million to work with. Now that you have some serious cash to work with you’re
ready to join the big leagues.

15. 11. Find a few other key properties to buy.
Some of these key properties include small walk-up apartment buildings, or
commercial real estate such as retail bays, or even businesses. You need to be very
careful and do your homework because this is what will move you into owning
income producing assets that will take you up to and beyond the millionaire status.
Shop around and try to secure properties for as little of that N4 million down as
you possibly can.
Go to realtors and tell them who you are, have a business card, a company name,
and maybe even a website made up so that you look like a professional. Tell them
you’re looking for commercial or residential real estate in the form of small
apartments, retail bays, strip malls, etc to invest in and that they should send you
any offers that come available. Provide your business card with all your contact
info, especially fax and email.

16. 12. Start to place lots of offers.
Place lots of offers offering very little down out of the N4 million you
have made earlier. Try to go for lots of offers and try to average placing
only 10% down on each property with the seller carrying a second
mortgage, plus a first to cover the rest.
That means that your 4 million naira can leverage 40 million naira worth
of apartments and commercial real estate. On average, that should
generate for you approximately N200,000 to N300,000 per month in
positive cash flow, plus another N180,000 to N240,000 per month in
equity build up on those properties. With that kind of money coming in,
you can start to afford to buy more buildings. At this stage you can still
flip homes but it will now be optional.

17. Contact us
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