spyder880: I am planning to partner with some like minded investors to start building houses for sale, or for rent. I want us here to suggest the best ways we can make this dream a reality. I plan to raise a total sum of N10m for the first investment.

The plan is to sell lots of N500k each, each investor can purchase as many lots as they can afford. We can decide the best ways to multiply this amount and share the profits in a transparent online arrangement.

I will now leave the floor open for friends to contribute, suggest, ask questions and make recommendations on how we can make this dream a huge success. More posts later in the day.

blink182: please ensure you get a lawyer to provide proper documentation.

kopell: @spyder as I am about to ask you, how did you want go about it.You have open floor discussion kicking. My idea is for you to please set up or a link where every individual investor has to be identified with their real identity. Try to get a full detail legal binding documentation on how an investor can invest. After you have gathered interested investors I believe, it should be registered as a private building corporative. You have to present to the investors your plan in details on how the investors will rip their profits in pattern of graphs and years on geographic locations, and time duration to complete the project. I believe every investor will have its lawyers go through the legal binding. My idea is to have very strong professional investors that can invest at least 2million Naira to start in the form of share to the companies. I want you to look beyond the east coast, strategic locations like Lagos and Abuja where the property values are more appreciative. @spyder I have watched you over the years, you have proven beyond reasonable doubts that you are a very ambitious person that wants to make housing markets in our country affordable for common people. I will always use this opportunity to thank Nairaland lawyer in of Mr. Mathew that have opened up most of the legal matters and expose a lot of scam in the housing markets through this forum. Thank you.

spyder880:

Thank you for all your contributions in this thread and in the previous thread from which we came over here. I note your advice that I should look at Lagos and Abuja, yes I am thinking about this on a national scale, but where do we start first? We have to start from a city and work our way to other cities/states. I don't want to make any suggestions, lets keep the floor open for more comments.

The sitting period (the period between when the house is built and when its sold) is very important to me. I know that properties tend to appreciate even when it is not sold immediately but my target is for quick sales. A quicker selling duration will ensure we keep the business viable, more locations will be explored and more building styles introduced. To this effect I am planning to hinge my sales plan on the reduction in the overall cost of the land, and the building itself. If we build cheaper, we can also sell cheaper beating the competition out there.

Let us keep the suggestions coming.

prince_onx:
You almost lost me or rather I was kind of confused when I read something about face-me-I face-you and also when I read about rent! I was already shaking my head and saying no until I read the above post and I think I clicked on one of the other links. For sure renting is completely out of the way and an average fund recovery period for rental property is estimated between 15-18yrs according to price/location (don't ask me for prove or fact! I don't have one na them say them say). So having said that, your above/quoted plan sounds better especially in a partnership form of business. I also know that as individual, we can and have also invested in properties in our local, familiar, and affordable cities/states but as Kopell rightly said, this proposal has to extend to cities with more/high property value, appreciate/fast growing, and most importantly sales quick! But to face the fact without sounding negative, can we afford those cities and states? Yes Abuja is a fast growing state like we all know, I don't know if I can comfortably say the same about Lagos but we all also know what plots of land cost there. Having said that, I will like to know/ask the possibility of acquiring land through the government and at government price. @Spyder pls don't take my question the wrong way because I am also a Nigerian and know how things are in naija and the type/kind of government we have but have you explored that option before? Do you think it's doable/possible? If No, then the idea will be to start locally since that's the way one/we can get cheap/affordable family owned land but if you think it's possible going through the government, then a proposal need to be prepared and presented to them. Awaiting more ideas and contribution all the same.

FLORIDACAR: @Spider, Do u have a particular location in mind to start with? If yes, where and why that location? If your answer base on your accessibility to better market or investors are allow
To suggest location? You know I grew to fall in love with your style on this tread after so much scrutiny . I can not be more happy with you that my predictions just last November are all
Coming to reality . In spider building with trust 2013.

Fhemmmy: I have been a silent follower of this and i really like the idea . . . Nice questions and all that kinda stuff, but i will like to know the procedure of choosing a location - Voting or by Suggestion, Now if all partners are even in Number and the voting is tied, who breaks the tie?
Anything run by Spyder, i just have to get madam approval and find a way to free some cash . . . But would like to know more

FLORIDACAR: What happen if investors suggest or vote somewhere outside your easten axis Mr.spider? I think it's more important to know to what extent u ready to sacrifice on this.

spyder880:

Outside the eastern axis is still within Nigeria , let us keep the options open and reach a decision after considering all it will involve. If there is ready money and I am sure of getting the project completed in a short time, then we will look at all costs associated with it. We must also remember that we are planning with N10m as our target sum. Thank you for your contributions.

prince_onx:
Ofcox outside the Eastern region is also Nigeria but realistically most investors especially in properties tend to invest in a region they're familiar with, probabely had spend some time/yrs in, and have some kind of ties to. For instance guys and please am not trying to introduce some tribal war, superiority, or differences here but a Southern investor/guy that grew up between Lagos and Ibadan will definately prefer investing in the South and like wise someone/investor from the East based in Enugu or Awka. Having said that, and like some of you had previously asked, how do we decide on a location?

This is what I will suggest/propose: (just 2 for now)
1. Categorize investors into two or more groups. Example:
Eastern Zone, Southern Zone, etc
2. Draw a plan, make an estimate/quote of start to finish of intended project.

Am very sure more ideas will come up/in but my idea/reason for zoning is to allow investors the option of buying into zones they prefer instead of voting. If for instance a bugalow project is intended to kick off in Awka or Enugu, and estimated for N4m for example, it's lot price can be set at N500k (8 investors) or even less people if more than one lot is bought! Same for a duplex, etc depending on what sells fast in the area. I can chose to buy into this lot if I prefer the East and same apply to someone that prefer to buy into a lot for Lagos/Ibadan. This will completely eliminate the voting thing and free market is the way to go in any investment. Investors can even (co-op) drag in friends or families to make up their own lot if they all prefer the area/city/state as long as they qualify and play by the rule. Seriously brain storming for more ideas and waiting to hear what you guys have in mind! Cheers!

Sagewood: Good idea!
The proposed business partnership will likely see the light of the day if we set aside
ethnic attachments and sentiments to any zones, regions or states/ cities.
This is a business plan to buy land/lands, build apartments/ houses and sell at a profit.
Let's us stick to a clear-cut business plan based on financial implications and profitability.
These are my suggestions:
1)Conduct a thorough research on the top ( e.g.7-10 cities- Abuja, Lagos, Port- Harcourt,
Enugu, Ibadan, Benin, Abeokuta, Asaba, etc. ) property markets across the country (except sensitive security locations).
2)The data gathering should capture cost of lands, cost to build, logistics,
appreciation of properties, etc.
3)Based on the outcome of the data analysis (profit margin will be a major factor), and brain storming,
we will list the top 3 locations.
4)People can invest in any of our top three locations to give them options. I believe voting may scuttle this great idea.
5)Form a committee to run the business or cooperative.


Please let's make good and informed decisions, and solve problems that may arise objectively.

spyder880:

You are one of the guys that if you don't step into this, I will retreat

You just asked a very important question, I see that a lot of interest is on the location but it will work out fine. If there is a tie, we repeat the election. The majority decision should always be allowed to run. Another thing I want to chip in is majority by lot size will be well considered. This may mean that if we agree to this, a person with 3 lots might have more voting power than a person with 1 lot.

Humanbeans: This will be the best thing to happen on nairaland, Im 100% in. there is power in numbers, and I believe this idea can beat the best properties companies in Nigeria. My suggestion is to fix a date, and a location where potential investors can meet. The location should be determined by a voting on the forum. After this initial meeting (its good to know ourselves0, we can then start the legal and other process of business plans and so on.

More later

Fhemmmy:

Ummmmm . . . I will suggest a Teleconference for the first couple of meetings to give chance to those that dont reside in Nigeria . . . Or even some residing in Nigeria but might not be able to travel to the location of choice.

prince_onx:
Good idea but do conference call for groups work in Naija? Here we have a free conference line where 100s of people can call in and get connected but I don't know about naija!