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4 Pages«<234
10-12M mortgage
vky
#61 Posted : Thursday, September 08, 2016 1:44:30 PM
Rank: Member


Joined: 6/17/2010
Posts: 569
tnai9 wrote:
Jon Jones wrote:

If its possible to get the cash 12 million, buy an eighth in a satellite town like Ruiru...build bedsitters and you will be smiling all the way to the bank.


I am working on an arrangement that will get me this money cash, but scaled down to about 9M. It will be mortgage money but diverted to my account.
I intend to clear the mortgage in 5yrs. Wazuans, what most lucrative business can I do with 9M. I am thinking RTO. I would buy the house, but dont think 60K pm rent from a 9M house is the best return.
Am thinking of...
1. Car business
2.
3.

Wazuans ideas..Ill have the money by December 2016


abstract

the idea is to open an online based venture selling health meters, home test kits, gym accessories and nutritional supplements(mainly fitness related), at this point many will have dismissed this as a bummer but what makes it stand out is the mode of marketing the products, instead of setting up an online platform and waiting for customers to log on and make orders, we will take it to where our target group are, the gym.

the gym set up will be something like this, we rent a wall inside the training area in a gym where we set up a display unit with samples of the products, next to this will set up a point of sale system where one after viewing the display and seen a product of interest can go on and order through the point of sale system and pick up his/her delivery the next day they come in to train.

the point of sale systems and displays will be unmanned and will operate like a ATM machine does, the plan was to deploy these systems in the best gyms in Nairobi starting with 10 gyms and then scaling up from there.

the products will be sourced from the UK ex factory
'One headache for famous medieval holy people was that someone might murder you to acquire your body parts for the relics trade'
hardwood
#62 Posted : Thursday, September 08, 2016 2:17:14 PM
Rank: Elder


Joined: 7/28/2015
Posts: 7,027
tnai9 wrote:
Wazuans am considering the following options:
1 - Flat on mbagathi way-9.5M - rental return 50-55k
Advantages - Location, rental growth(will level off at sm point), can stay in it since am based in Nairobi
Disadvantages - apartment(inflexibility)

2 - Maisonette in Buru with an extension 9.3M - Total rental income 50k, main 35, ext 15k
Advantages - own title, can modify, can rent out the extension and stay in main, Cant miss tenant in case of renting
Disadvantages - hse within eastlands - slow rental growth, eastlands challenges--Outer ring completion may solve some

3 - Hse in a County HQ(main house + 2SQs) - 7.5M Rental income 50K
Advantages - Higher ROI that Nairobi, Own title, Can clear the mortgage faster and move onto something else.
Disadvantages - Will have to be a tenant now that am based in Nairobi..

4. House in county HQ with room for expansion - 7M , rental return 26K
Advantages - There is big room for expansion and growing the rent,House so close to the road, own title
Disadvantages - Capital for expansion not available immediately,

which option do wazuans lean towards?


No. 2. Buy in Nairobi coz that is where you are working. Good thing with a house on a plot is that it can be modified/redeveloped in the future which is not possible if you buy an apartment. Also your family needs privacy which a house with an own compound offers. Your kids will be grown up soon and the boys will need a "simba" for their privacy and they can use the SQ.

There is nothing wrong with buying in eastlands. It doesn't mean you will live there forever. You could sell the property in future, add more money and buy elsewhere. Or you could rent out your property and rent somewhere else. Problem is that many people want to buy their first house in karen or runda which may not be possible if you don't have 70m. Start small and gradually climb the property ladder.
hardwood
#63 Posted : Thursday, September 08, 2016 3:00:56 PM
Rank: Elder


Joined: 7/28/2015
Posts: 7,027
tnai9 wrote:
Jon Jones wrote:

If its possible to get the cash 12 million, buy an eighth in a satellite town like Ruiru...build bedsitters and you will be smiling all the way to the bank.


I am working on an arrangement that will get me this money cash, but scaled down to about 9M. It will be mortgage money but diverted to my account.
I intend to clear the mortgage in 5yrs. Wazuans, what most lucrative business can I do with 9M. I am thinking RTO. I would buy the house, but dont think 60K pm rent from a 9M house is the best return.
Am thinking of...
1. Car business
2.
3.

Wazuans ideas..Ill have the money by December 2016


If you have a ka-plot somewhere within or near the city, you could develop it. 9m can build the ground floor and first floor. Each floor would have four 2bdrm units and a one 1bdrm. If you charge 20k and 15k respectively, that will be 190k per month. If you don't have a plot, you could get one at 4m and do one floor to give you 95k pm. Then add the floors pole pole with a target of 6flrs, to give you 570k per month.
tnai9
#64 Posted : Thursday, September 08, 2016 3:01:50 PM
Rank: Member


Joined: 6/21/2010
Posts: 345
Location: easto
hardwood wrote:

No. 2. Buy in Nairobi coz that is where you are working. Good thing with a house on a plot is that it can be modified/redeveloped in the future which is not possible if you buy an apartment. Also your family needs privacy which a house with an own compound offers. Your kids will be grown up soon and the boys will need a "simba" for their privacy and they can use the SQ.

There is nothing wrong with buying in eastlands. It doesn't mean you will live there forever. You could sell the property in future, add more money and buy elsewhere. Or you could rent out your property and rent somewhere else. Problem is that many people want to buy their first house in karen or runda which may not be possible if you don't have 70m. Start small and gradually climb the property ladder.


Thanks for the advice. But was saying I don't want to buy a house coz of the low ROI. I have worked out an arrangement where I'll get the mortgage of 9M as cash. So I am asking what best venture I can engage in with 9M cash money, where I can get highest ROI.
"The problem with the world is that the intelligent people are full of doubts, while the stupid ones are full of confidence." ― Charles Bukowski
tnai9
#65 Posted : Thursday, September 08, 2016 3:10:22 PM
Rank: Member


Joined: 6/21/2010
Posts: 345
Location: easto
hardwood wrote:

If you have a ka-plot somewhere within or near the city, you could develop it. 9m can build the ground floor and first floor. Each floor would have four 2bdrm units and a one 1bdrm. If you charge 20k and 15k respectively, that will be 190k per month. If you don't have a plot, you could get one at 4m and do one floor to give you 95k pm. Then add the floors pole pole with a target of 6flrs, to give you 570k per month.


This sounds very good..but can 5M built 4 2br and 1 br? I am not an expert in that area. I have some plots in Nai but not in such a prime area, so rent will not be near the figures you quoted. I may have to sell them, but selling a plot is another ceremony..
"The problem with the world is that the intelligent people are full of doubts, while the stupid ones are full of confidence." ― Charles Bukowski
obiero
#66 Posted : Thursday, September 08, 2016 3:30:26 PM
Rank: Elder


Joined: 6/23/2009
Posts: 9,530
Location: nairobi
hardwood wrote:
tnai9 wrote:
Jon Jones wrote:

If its possible to get the cash 12 million, buy an eighth in a satellite town like Ruiru...build bedsitters and you will be smiling all the way to the bank.


I am working on an arrangement that will get me this money cash, but scaled down to about 9M. It will be mortgage money but diverted to my account.
I intend to clear the mortgage in 5yrs. Wazuans, what most lucrative business can I do with 9M. I am thinking RTO. I would buy the house, but dont think 60K pm rent from a 9M house is the best return.
Am thinking of...
1. Car business
2.
3.

Wazuans ideas..Ill have the money by December 2016


If you have a ka-plot somewhere within or near the city, you could develop it. 9m can build the ground floor and first floor. Each floor would have four 2bdrm units and a one 1bdrm. If you charge 20k and 15k respectively, that will be 190k per month. If you don't have a plot, you could get one at 4m and do one floor to give you 95k pm. Then add the floors pole pole with a target of 6flrs, to give you 570k per month.

@hardwood that is good advice
PORTFOLIO: KQ 82,000
mkenyan
#67 Posted : Thursday, September 08, 2016 5:23:26 PM
Rank: Veteran


Joined: 4/1/2009
Posts: 1,619
tnai9 wrote:
Jon Jones wrote:

If its possible to get the cash 12 million, buy an eighth in a satellite town like Ruiru...build bedsitters and you will be smiling all the way to the bank.


I am working on an arrangement that will get me this money cash, but scaled down to about 9M. It will be mortgage money but diverted to my account.
I intend to clear the mortgage in 5yrs. Wazuans, what most lucrative business can I do with 9M. I am thinking RTO. I would buy the house, but dont think 60K pm rent from a 9M house is the best return.
Am thinking of...
1. Car business
2.
3.

Wazuans ideas..Ill have the money by December 2016

1. if you are employed and won't give your all to the business then forget side hustles - buy the house and be contented with that small roi.
2. for whatever reason forget about car business
3. its a cliche but always true - never take a loan then think of what to use the money for after.
hardwood
#68 Posted : Thursday, September 08, 2016 9:38:18 PM
Rank: Elder


Joined: 7/28/2015
Posts: 7,027
obiero wrote:
hardwood wrote:
tnai9 wrote:
Jon Jones wrote:

If its possible to get the cash 12 million, buy an eighth in a satellite town like Ruiru...build bedsitters and you will be smiling all the way to the bank.


I am working on an arrangement that will get me this money cash, but scaled down to about 9M. It will be mortgage money but diverted to my account.
I intend to clear the mortgage in 5yrs. Wazuans, what most lucrative business can I do with 9M. I am thinking RTO. I would buy the house, but dont think 60K pm rent from a 9M house is the best return.
Am thinking of...
1. Car business
2.
3.

Wazuans ideas..Ill have the money by December 2016


If you have a ka-plot somewhere within or near the city, you could develop it. 9m can build the ground floor and first floor. Each floor would have four 2bdrm units and a one 1bdrm. If you charge 20k and 15k respectively, that will be 190k per month. If you don't have a plot, you could get one at 4m and do one floor to give you 95k pm. Then add the floors pole pole with a target of 6flrs, to give you 570k per month.

@hardwood that is good advice


I have a friend who took that path 10yrs ago and he has just finished his second block of "apartments". He's making >1m per month and is almost loan free.
tnai9
#69 Posted : Friday, September 09, 2016 8:06:25 AM
Rank: Member


Joined: 6/21/2010
Posts: 345
Location: easto
hardwood wrote:

I have a friend who took that path 10yrs ago and he has just finished his second block of "apartments". He's making >1m per month and is almost loan free.

@Hardwood, Is there somewhere in Nairobi I can get a(commercial) plot for 4M and get such rental returns? I imagine you would need 6M+ for such a plot. Please guide. In the counties its possible in some towns like Ksm,Eldoret, ktl though rents will be lower..I will however need a lot of information gathering.
"The problem with the world is that the intelligent people are full of doubts, while the stupid ones are full of confidence." ― Charles Bukowski
tnai9
#70 Posted : Friday, September 09, 2016 8:10:36 AM
Rank: Member


Joined: 6/21/2010
Posts: 345
Location: easto
mkenyan wrote:

1. if you are employed and won't give your all to the business then forget side hustles - buy the house and be contented with that small roi.
2. for whatever reason forget about car business
3. its a cliche but always true - never take a loan then think of what to use the money for after.


Thanks for the advice, but am well aware of this and am at that age and point in life where I cant recover from mistakes therefore wont just jump onto projects, age is not on my sidesmile. Prudence is very very critical now
"The problem with the world is that the intelligent people are full of doubts, while the stupid ones are full of confidence." ― Charles Bukowski
The Great
#71 Posted : Saturday, September 10, 2016 7:16:16 AM
Rank: Member


Joined: 9/9/2015
Posts: 230
Thats quite substantive @tnai9.You will have to invest in an industry you already know well. Dont forget a biz plan(a proper one) to level your head and cover areas you may have overlooked. A mentor too
"Buy when there's blood in the streets, even if the blood is your own."
The Great
#72 Posted : Saturday, September 10, 2016 7:19:47 AM
Rank: Member


Joined: 9/9/2015
Posts: 230
Dont follow fashion, everyone is a farmer so you too, landlord so you too. Really ensure you know why your biz approach is better than whats already available in the market.
"Buy when there's blood in the streets, even if the blood is your own."
The Great
#73 Posted : Saturday, September 10, 2016 7:24:47 AM
Rank: Member


Joined: 9/9/2015
Posts: 230
Cant u do rentals with 9.8M,then invest 0.2M in farming. Reinvest your yields for 5 yrs. End result, a pretty big farm and appreciated real estate.
"Buy when there's blood in the streets, even if the blood is your own."
Mkimwa
#74 Posted : Thursday, January 18, 2018 8:20:30 AM
Rank: Member


Joined: 10/26/2008
Posts: 364
@tnai9,

What did you finally decide to do?

Am doing some construction, and wouldn't mind having a chat about this - if this is the route you chose.
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